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The price of power

The price of power. How to misuse a new law and get on top ePSIplus London, November 1, 2007. Falkplan-Andes. Falkplan (1947) Cartography (print) Market leader in the Netherlands Andes (1990) Digitised the Netherlands (database comparable to Tele Atlas and Navteq)

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The price of power

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  1. The price of power How to misuse a new law and get on top ePSIplus London, November 1, 2007

  2. Falkplan-Andes Falkplan (1947) • Cartography (print) • Market leader in the Netherlands Andes (1990) • Digitised the Netherlands (database comparable to Tele Atlas and Navteq) • Route planning, automated cartography Falkplan-Andes(2004) • Management buy-out and merger in 2004 • 60-70 employees

  3. A short guide How to misuse a new law and get on top

  4. Setting the goals • Keep your job • The way it is • Fight change • Make it even more important • Be the keeper of the base and many projects will be yours (A strong trunk can hold many branches) • Define the standard and be the spider in the web • The one that writes, stays • Use FUD • Fear • Uncertainty • Doubt

  5. Manipulation through pricing • Monopolist? • Set high price level • Create lots of products and services • Obfuscate cost structure • Create and maintain dependencies • Keep it a standard, label it INSPIRE • Competitors? • Set low price (preferably free) • Call upon law & regulation (sorry, we have to) • Obfuscate future policies, do not mention the camel’s nose • Make it the new and independent ‘standard’, label it INSPIRE

  6. But is it (y)our task to do this? • We do not answer stupid questions • Of course it is, that’s obvious • We have the people, we shouldn’t waste their time doing nothing • But we have done so for many years and nobody complained before. Maybe, if we would start creating it today we wouldn’t, but back then it made sense and now we are here and can’t go back

  7. But is it really (y)our task to do this? • There are a lot of internal and external processes that depend heavily on our products like in problem area A and with policy B or C and many more, moreover it fits in the current policies and strategies that have been laid out in document xyz which you can find somewhere else and if it is unclear please ask again there • Doom will reign us if we get to be dependent on a monopolist company, so no, we should not buy the data but make sure we regulate this field • Sure we get in your way, but there are many companies that benefit from our work • It is far cheaper for us to create it ourselves than buy it on the market • No current company can comply to our specifications

  8. Why such a high price? • We have to maintain the quality and standards set to us by the applications using our data and certain laws and regulations. Moreover, we are anticipating to comply to new regulations within INSPIRE or some other program • We are constantly trying to create an optimal cost structure and many options are to be considered but changing it every year would generate too many problems for us and many others • If we could get an effective cost coverage with certainty for continuity (our responsibilities span decades) we would lower prices or even consider giving it for free, but …

  9. Why give it away for free? • Freeing our data will stimulate the economy and create a breeding ground for innovation • Users are used to free data, Google maps is free so why shouldn’t we be • Citizens have already paid for the data through taxes, so it is only fair to give it back • There are many companies that welcome this policy • Data should be free and not just for the ‘happy few’

  10. Dutch history • 1984: Tele Atlas to market • 1988: Navteq to market • 1990: Andes to market • 1994-1998: Dutch Government (RWS) creates NWB. Internal use only • 2005: NWB looses fight over Dutch geo-governance • 2006: Last meeting RWS-market • 2007: PSI dir. Implemented in WOB • 2007: NWB freed under new PSI law (PIA) but not re-usable before 2009 • 2007: AND to market • 2007: Openstreetmap.org to market

  11. Dutch situation • Poor co-operation between public and private sector in mobility market • Strong, innovative and competitive market for geo-information and applications in mobility without any government aid (TomTom, Route66, VDO Dayton, Tele Atlas, Navteq, Falkplan) • Misuse by public sector of PSI directive to enter market and get the Camel’s Nose in • Free data kills innovation, market and trust For the Dutch tax payer, it will turn out to be Goedkoop is duurkoop (An old Dutch merchant proverb: ‘Be cheap, pay dearly’)

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