Ordnance Survey in Flux
spatial data December 31st, 2009The recent announcements that more mapping data will be available for free from the Ordnance Survey certainly left many employees and managers at the venerable institution with a queasy feeling this holiday season. The agency employs more than 1,000 people and was already on track for aggressive cost cutting to remove £20m over five years, amounting to a five percent cut in operating costs each year. Meanwhile there’s a new £45m headquarters being built.
The new policy would certainly reduce incoming revenue and could dramatically impact the agency’s business model. The business model of Ordnance Survey is different than any other national mapping agency, given that it’s run as a corporation that’s owned by the crown. There won’t be as dramatic a shift as what has occurred to the U.S. Geological Survey when federal funds dried up for the support of national mapping efforts, because the business requirement to map the country will still stand in place. But, the coming negative impacts on revenue will certainly drive reductions to the workforce, and will alter how the agency does business.
The announcement about the new open data policy has also had an impact on the entire geospatial community in the United Kingdom. Geospatial consultants, map retailers, and navigation companies are all up in the air as Ordnance Survey data, and how it’s licensed, impacts both the expense and revenue sides of their business.
Both the OS and the UK’s geospatial industry are in limbo until the details of the new open data policy become known after a 12-week government consultation period that will end on March 17. In this time of forward-looking planning for the coming year, there are many anxious individuals that can’t plan until these details are resolved.
Posts
December 31st, 2009 at 1:42 pm
Matt,
A rather negative take on the government consultation?
Of the three ways forward penned in the consultation paper, only one guarantees staff reductions and that’s maintaining the status quo, as organisations like Google and Open Street Map eat further into their existing customer base, reducing revenue and destroying brand value.
The funding gap exposed in options 2 & 3 is also very, very small. Half OS revenue currently comes from the government via local councils, so in absolute terms we’re looking at finding £50 million a year (or a bankers bonus).
The consultation provides the opportunity for the OS and her staff to solve problems like this:
http://techfortesco.blogspot.com/2009/10/tesco-finders-towncity-search-not.html
A UK based (albeit global) grocery company, using American companies for address finding?
The upside of a shake up at the OS for ‘UK Geo’ is massive; for the first time in the digital age, UK maps in a digital form may be priced affordably, the consultation should be celebrated and the government applauded for seeking feedback.
Happy New Year!
Rob
December 31st, 2009 at 2:34 pm
Hope I didn’t put too much of a negative spin. I couldn’t help but think of individuals facing an uncertain employment picture, and those companies facing accelerated disruption. I’m overall very optimistic about the benefits of more open data. And regarding OS data, it’s much better data than is available anywhere else. The world will be watching as the policy changes take place, and as new business models emerge.