Is Open Data Useful? Depends on who you ask.

A recent major study conducted by Pew Research sampled the opinions of a wide spectrum of Americans on the use to which they put open data. It also asked their opinions on whether such data was useful or could be.

One of the major findings, not surprisingly, was that the usefulness of open data in the minds of the public depends on whether people trust the government or not. Those who trust the government place a higher value on open data and those who do not, don't. Generally speaking.

It is expected that open data will grow exponentially over coming years and that it will be used for everything from weather forecasting to renewal of fishing licences.

An excerpt: "Few Americans think governments are very effective in sharing data they collect with the public:
Just 5% say the federal government does this very effectively, with another 39% saying the federal government does this somewhat effectively.
5% say state governments share data very effectively, with another 44% saying somewhat effectively.
7% say local governments share data very effectively, with another 45% responding somewhat effectively.
Somewhat larger numbers could think of examples in which their local government either did or did not do a good job providing information to the public:
19% of all Americans could think of an example where the local government did a good job providing information to the public about data it collects.
19% could think of an example where local government did not provide enough useful information about data and information to the public.
Relatively few Americans reported using government data sources for monitoring what is going on:
20% have used government sources to find information about student or teacher performance.
17% have used government sources to look for information on the performance of hospitals or health care providers.
7% have used government sources to find out about contracts between government agencies and outside firms.
The low percentages likely reflect the fact that open data is relatively new and not yet comprehensive. AS time goes on and applications develop, there seems little doubt that these percentages will grow. For a more detailed look at the findings of the study, click this link.

Data Rules

Last month, the US Secretary of Commerce announced the appointment of a Chief Data Officer to the Department of Commerce.

This move exemplifies the importance of data in our world. One of the major effects of the proliferation of digital technology and its interconnectedness has been the creation and availability of vast amounts of data. There is widespread recognition, in business and in government, that this data is a valuable resource.

This recognition shows itself in business with the growing use of analytics for everything from business intelligence to customer relationships to analyzing travel expense reports.

In government, policy formulation is increasingly dependent on meaningful data from a variety of sources.

A problem emerges, however. Not all of the data is usable in its present form. It exists in a variety of information systems and formats. Thus the rise of the concept of open data, i.e. data that is set in a format that is open and understandable to a variety of platforms, such as XML and XBRL. Governments have placed much emphasis on the creation of open data portals to make data available to the public for analysis.

Accountants need to take note. In an increasingly data centric world, their role is rapidly changing from one where they create pre-formatted reports to one in which they must analyze a vast array of data and make sense of it to a waiting world. This is an epic change, to use a currently popular metaphor.

Thus in the world of accounting, the primary focus of effort has shifted from debits and credits to data analytics. From pre-formatted reports for general purposes to analytical reports that support informed decision making on urgent issues of the day.

How we make the data more useful by adopting more open standards in presentation and how we then analyze the data is what will shape the accounting profession as we move more deeply into the world of data.

For an analysis of the Department of Commerce Appointment, check this link.