The city of Lahti decided to open up their data for public use. The biggest challenge was to identify the datasets that will encourage the local community to use the city data to develop new business ideas. This article presents suggestions of which datasets the city of Lahti should make publicly available. Also presented are the most efficient means of defining and modifying said datasets.

Authors: Lenka Zatkova and Sariseelia Sore

Open Data

Data is the basic element of human knowledge. The value of data is in its potential to generate information, understanding and wisdom. (Kitchin 2014, 12.)  The knowledge becomes open if anybody can access, use, modify or share it (Open Knowledge International 2017b). Data is considered to be open when it is available under an open licence, which gives permission to republish the data, sell products or services based on the data and to create new content using the data free of charge (Open Data Institute 2017).

The main idea of opening public data is to increase its value by its usage. Open public data enhances transparency, citizen participation, collaboration and innovations. (Chignard 2013.)

Municipal Open Data and Entrepreneurs

Opening up municipal data for commercial use promotes local entrepreneurship. The objective of cities is to open up as many municipal datasets as possible. The decision about which datasets should be opened depends on their potential value for local entrepreneurs. Entrepreneurs use the data mostly for app development or providing online, analytical, consultancy or training services. (Halonen 2012, 86 -87.)

A demand-based approach is the best to identify the entrepreneurs’ needs for open data (Conradie & Choenni 2014, 14). First, the owner of the data informs what data can be published and after that, the utilisers of the data come up with ideas about its practical applications (Conradie & Choenni 2014, 14; Moneo 2016).

Identification of Needs for Municipal Open Data in Lahti Region

During the research process there were three different approaches used to identify the needs for municipal open data in Lahti Region (Zatkova 2017). First, the companies were asked in a survey about their needs for municipal open data. Considering the early phase of the project, their answers had to be interpreted within the context of their awareness of open data. Keeping in mind that the awareness of open data could turn out to be low, another two approaches were deemed necessary. Firstly, the analysis of the experiences of other Finnish cities who have already opened some datasets. Secondly, the evaluation of recent trends in the business ideas of local start-ups using municipal open data.

A sample of 40 companies providing products or services in the Lahti area revealed their preferences in a survey. They could choose the datasets from a list, as well as suggest their own datasets. The outcomes of the survey are presented below.

The awareness of open data varied greatly among the companies in the sample. Only 25 % claimed to understand the concept and besides knew how they could use the municipal data if opened. The requirements of this group were considered the most relevant as they base on existing needs.

Familiarity of the open data concept by rest of the companies turned out low. Those companies didn’t come up with any business ideas exploiting municipal open data either, but they showed preliminary interest in some datasets. However, the relevancy of such interest is considered limited for purposes of decision-making by the city.

Datasets Desired by Companies with Existing Business Ideas

The most desired datasets by the companies with existing business ideas are closely related to buildings, construction and housing. The exact number of companies per category is shown in figure 1.

Figure 1. Municipal datasets desired by the companies with existing business ideas (Zatkova 2017)

The companies also came up with their own ideas of datasets that would support their business ideas. They suggested that the city should publish the energy savings targets for construction projects, and the energy strategy of the city of Lahti.

The field of energy savings appeared repeatedly also in business ideas among the start-ups that have been established in Lahti area in last four years (Business Development Manager 2017).

Datasets Desired by Companies without Existing Business Ideas

The companies without business ideas related to municipal data assume that access to city data could enhance development of their businesses. Their business areas influence their preferences. The most desired datasets by these companies are shown in figure 2.

Figure 2. The most desired municipal datasets by the companies without a business idea (Zatkova 2017)

The datasets are mostly general and usable by any kind of company, for example, business listings, population data or public bodies’ decisions. Besides these categories, the companies require datasets related to buildings, construction and housing.

The companies suggested also publishing data regarding the repair and construction of public buildings, annual plans and the budgets of the technical board and traffic in the city centre (including pedestrians).

Experiences in other cities reveal municipal datasets that are frequently used by other parties. There is a big chance that the same datasets could work also for the city of Lahti. The most relevant datasets include public transportation, traffic, parking information, geospatial data, city services and events. (Development Manager 2017)

The Importance of Cooperation

Experiences in other cities in Finland confirm that the city has to initialize the discussion on open city data, show a real commitment and be responsive towards citizens. Demand for datasets has to be developed in communication with companies, researchers, students and developers. The best way to do it is to take an iterative and cooperative approach supported by, for example, meetups, hackathons and competitions. The city should also be engaged in existing communities in social media. (Development Manager 2017). The involvement of the regional development organisation Ladec is indispensable in all these activities.

Figure 3. Opening up municipal datasets in cooperation with local community (Zatkova 2017)

Figure 3 illustrates recommended stages of the process of opening municipal datasets. The process is iterative. After a dataset is published, it must be regularly updated and, if required, modified.  (Development Manager 2017)

Conclusion

The decision about the municipal datasets to be opened has to be based on real needs. The initial phase of the municipal data opening project in city of Lahti can be supported by the data collected from local companies in spring 2017.  Communication with other cities experienced in the open data issues, would also be very valuable. However, constant cooperation with local community seems to be the most essential part in specifying municipal open datasets. It is also a necessity, after the data has been opened, to regularly in close cooperation with the open data utilizers to discuss requirements for updates and modification of the open datasets.

References

Business Development Manager. 2017. Ladec Oy. Interview 22 February 2017.

Chignard, S. 2013. Paris Innovation Review. [Cited 11 May 2017]. Available at: http://www.paristechreview.com/2013/03/29/brief-history-open-data/

Conradie, P. & Choenni, S. 2014. On the Barriers for Local Government Releasing Open Data. Government Information Quarterly. [Electronic journal]. Vol. 31, S10-S17. [Cited 12 May 2017]. Available at: https://www.researchgate.net/publication/261989071_On_the_barriers_for_local_government_releasing_open_data

Development Manager. 2017. Tredea Oy. Email correspondence. Recipient Zatkova, L. Sent on 9 March 2017.

Halonen, A. 2012. Being Open About Data: Analysis of the UK open data policies and applicability of open data. [Online document]. London, United Kingdom: Finnish Institute in London. [Cited 12 May 2017]. Available at: http://finnishinstitute.cdn.coucouapp.com/media/W1siZiIsIjIwMTYvMDgvMjUvMDkvMzgvMjEvZGQyOGQ5MTUtY2Q4YS00N2U0LWEyZTAtM2FiOWUxN2M0Njc2L2JlaW5nIG9wZW4gYWJvdXQgZGF0YS5wZGYiXV0/being%20open%20about%20data.pdf?sha=cad600352a6ffb0b

Kitchin, R. 2014. The Data Revolution: Big Data, Open Data, Data Infrastructures & Their Consequences. London, United Kingdom: SAGE Publications.

Moneo, A. 2016. International Open Data Conference 2016. [Cited 12 May 2017]. Available at: http://opendatacon.org/five-strategies-enact-municipal-open-data-policy/

Open Data Institute. The Open Data Institute. [Cited 4 May 2017]. Available at: http://theodi.org/guides/publishers-guide-open-data-licensing

Open Knowledge International. Open Definition. [Cited 4 May 2017]. Available at: http://opendefinition.org/od/2.1/en/

Zatkova, L. 2017. Municipal Open Data and Regional Development. Identification of Open Datasets of City of Lahti. [Online document]. Bachelor’s thesis. Lahti University of Applied Sciences, Faculty of Business and Hospitality Management. Lahti. [Cited 2 June 2017]. Available at: http://urn.fi/URN:NBN:fi:amk-2017052910900 

 Authors

Lenka Zatkova has studied Business Information Technology at Lahti University of Applied Sciences and will graduate and receive a BBA degree in June 2017.

Sariseelia Sore works as a Senior Lecturer in Business Information Technology Degree Programme at Lahti University of Applied Sciences, Faculty of Business and Hospitality Management.

Published 8.6.2017

The sphere of marketing has experienced dramatic changes. Nowadays marketing varies remarkably from marketing of 50 years ago. Starting from customer marketing in 1950s and followed by industrial marketing, non-profit and service marketing, relationship marketing finally took its place in 1990s. In the following article the main factors that affect seller-buyer relationships as well as factors that cause relationships dissolution between the two parties are discussed. Moreover, recommendations how and why to maintain long-term relationships are given.

Authors:  Anastasiia Krokhina and Minna Porasmaa

Definition of relationship marketing

Relationship marketing (RM) represents the new phase in marketing world. Coming from transactional marketing with attention to actual purchases, relationship marketing went one step further. In relationship marketing world, special attention is paid to end users. (Krokhina 2017.) In other words, the customer is the starting point of all operations. Therefore, utilizing RM strategies companies try to build reliable and long-term seller-buyer relationships. Instead of searching for new customers, companies try to listen to the opinions of their customers and to satisfy them. (Buttle 1996, 1-28.)

Dissolution

Dissolution represents the end of seller-buyer relationships. According to Dwyer, Schurr and Oh (1987), not all the relationships lead to mutual interdependence and trust. Furthermore, even well-established relationships might break up due to different reasons. These reasons may vary a lot from one situation to another. However, there are several important aspects to pay attention to in order to avoid relationships dissolution.

According to Demers (2016), there are 10 reasons why customers break up seller-buyer relationship. As presented in Figure 1, the most common reasons are closely linked with the price of the services/products, the value the customers gain, the attitude towards them and competition. Regarding prices, some companies may originally try to attract the customers with a temporary decline in prices, and once customers are gained they raise up the prices. This is an example of a so-called price trap. Many buyers fall into such traps and decide to break up relationships afterwards. Another reason addresses the problem of received value. All in all, both sides of interaction start the relationships keeping in mind the value that they might gain. Therefore, in case the customers do not receive the expected benefits, the dissolution is very likely to occur.

Figure 1. Reasons of dissolution (Demers 2016)

One more important reason is the sellers’ attitude towards the customers. In any kind of situation, even the most unexpected and unpleasant, sellers and buyers should stay calm and be respectful. Sometimes one minor situation might break up even long-term relationships. Finally, competition also plays an important role when it comes to dissolution problems. Customers have the freedom of choice and they might decide to try something new of other companies or even switch to another company on a permanent basis.

Summing up, there are a lot of cases that may cause a break up of relationships. Moreover, reasons of dissolution vary a lot from minor to very serious problems. This raises a question: What can be done to save the relationships from dissolution?

Ways of Avoiding Dissolution

It is crucially important to understand your customers. Having an image of what your customers are like and what they want, helps to treat them respectively. Moreover, different customers bring different value to companies. (Kong 2006.) Some of them often make small purchases, whereas others rarely buy something, but in case they do, it is something expensive. Thus, they all bring value to companies but the value varies in time spans, amount and frequency.

By understanding your customers it is easier to avoid break ups of relationships. However, there are a few more important issues to take into consideration.

The first thing to be paid attention to is customer satisfaction. The fact of keeping customers unsatisfied with prices/products/services is the most probable cause of relationships dissolution. (Egan 2011, 127-137.) Customer satisfaction depends on customers’ expectation. For example, if the quality of service they get is higher than what they expect or on the same level, then they are satisfied. On contrary, if the quality is worse rather than what is expected, the customers remain unsatisfied. Thus, a way to avoid dissolution of relationships is to care about and to be interested in your customers and their satisfaction when you execute your activities.

The second advice how to avoid the break up of relationships is getting closer and personal with your customers. Having emotional connections people tend to trust each other more. Furthermore, getting personal with customers bring the relationships to a new level. (Malone 2015.) It means that the purchase is no longer just an exchange of goods and money but it is also complemented by positive emotions. People are willing to come to such a place over and over again. Moreover, it is much harder to leave something you got used to and have personal linkage to – you would rather try to solve any potential problem.

The third recommendation is to organize loyalty programs. In order to be committed to a company, a customer should understand the benefits s/he will get. However, the same benefits are not enough to keep customers for a long time. Loyalty programs help a lot in maintaining reliable, long-lasting seller-buyer relationships. (Butscher 2002, 31-50.) In addition, loyalty programs make customers feel special. That is what needed in order to keep the customers and to maintain the competitive edge over the competing companies.

To sum up, relationship marketing deals with creating value for customers and receiving value in return for a long period of time. Even though RM is fully focused on customers, sometimes seller-buyer relationships might lead to a dissolution stage at some point of the relationships. Moreover, there are a number of reasons for this. However, it does not mean that the break up of relationships is unavoidable. Listening to customers and working with them in cooperation helps to avoid dissolution.

References

Butscher, S. 2002. Customer Loyalty. Programs and Clubs. 2^nd edition. Aldershot: Gower Publishing Limited.

Buttle, F. 1996. Relationship marketing. Theory and practice. London: Paul Chapman Publishing Ltd.

Demers, J. 2016. The Most Common 10 Reasons Clients Leave. Entrepreneur. [Electronic magazine]. [Cited 10 May 2017].  Available at: https://www.entrepreneur.com/article/272978

Dwyer, R., Schurr, P., Oh, S. 1987. Developing Buyer-Seller Relationships. New York: American Marketing Association.

Egan, J. 2011. Relationship Marketing. Exploring Relational Strategies in Marketing. 4^th Edition. [Electronic book]. Harlow: Pearson Education Limitied. [Cited 13 May 2017]. Available at: http://www.ssnpstudents.com/wp/wp-content/uploads/2015/02/Relationship-MaRketing.pdf

Krokhina, A. 2017. Relationship Marketing. Developing Seller-Buyer Relationships. [Online document]. Bachelor’s thesis. Lahti University of Applied Sciences, Faculty of Business and Hospitality Management. Lahti. [Cited 7 May 2017]. Available at: http://theseus.fi/bitstream/handle/10024/125389/Krokhina_Anastasiia.pdf?sequence=2

Kong, C., M. 2006. Relationship Marketing in a Globalised World. Kuala Lampur: Utusan Publications & Distributors SDN BHD.

Malone, C. 2015. It is time to get personal with your customers again. Fidelum Partners. [Cited 14 May 2017].  Available at: https://fidelum.com/insights/its-time-to-get-personal-with-your-customers-again/

 Authors

Anastasiia Krokhina has studied International Business at Lahti University of Applied Sciences and will graduate and receive a BBA degree in the end of May 2017.

DSc. (Econ. And Bus. Adm.) Minna Porasmaa works as a Senior Lecturer at Lahti University of Applied Sciences, Faculty of Business and Hospitality Management.

Published 29.5.2017