This century is already witnessing extraordinary transformation fuelled by rapid technological change and the availability of massive data and information. It’s only going to change faster.

This period of disruption and innovation – also known as the fourth industrial revolution – brings challenges and opportunities in which data and information must be leveraged to drive productivity, growth and international competitiveness.

In Australia, the current economy-wide value of government data is estimated to be as much as $25bn a year. Furthermore McKinsey & company estimate that open data has the potential not only to transform every sector of the global economy but also to unleash more than $3tn in economic value annually.

Australia ranks equal sixth (behind Finland, Taiwan, UK, Denmark and Colombia) in the 2015 global open data index. But in a country where the cost of doing business is relatively high owing to input, labour and regulatory costs, realising the full potential of open data in formats that can be easily and quickly retrieved, processed and copyright-free, is vital.

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Big data comes from many sources, including research findings and social media. The most extensive and widely used is open data from government sources. This includes data from statistical agencies and data gathered about healthcare, transport, education, agriculture and other social and economic sectors. Each time commuters catch a bus, each time a tax return or medical claim is lodged, data is collected.

State and federal governments and statutory authorities hold, create and collect vast amounts of high-quality data which has tremendous potential to drive innovation and economic growth. For example, by knowing the commute times and loads, roads and transport modalities can be optimised. So it’s time for government to share more of this data, more quickly, so it can be effectively mined and analysed for that potential to be fully realised.

While open data and information is made available on request, it can be subject to long lead times. For example, the Victorian government’s DataVIC Access Policy guidelines refer to the agency’s “dataset custodian” responding to requests within four weeks, while data updates may be released on a quarterly or annual basis.

We are already using open data in our daily lives when we use our transport apps provided by state governments. Around the world governments are increasingly recognising the benefits of digital technologies and data and are using these modern tools to raise economic competitiveness in all industries from agriculture to manufacturing. In the UK, open data has seen many startups flourish. GeoLytix, for instance, creates geo data products such as maps and boundary data thanks to data issued from Transport for London and other government departments.

Australian companies and so-called data-preneurs are also beginning to capitalise on the use of open data. The creation of a free energy rating app, which, like the well-known and trusted energy rating labels on millions of appliances sold every year, is designed to help consumers save money on their power bills by choosing energy efficient appliances.

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The impact of open data and technology-enabled transparency is not exclusively economic as government openness yields other important social benefits which help our broader community. A good example is Melbourne’s Ask Izzy app that connects homeless people to key support service.

For communities, using government data that matters to them promotes engagement and choice. The city of Melbourne took the lead by launching the first open data platform in Australian local government in 2014. More than 100 data sets are now available on the platform, ranging from information about the city’s 70,000 trees to details of council fees and schedules.

Open data will increasingly help governments transform the way they deliver services, while at the same time providing significant economic stimulus, cost savings and improved engagement with stakeholders.

The New South Wales government is ahead of the curve when it comes to digital licences. Residents can now store their fishing, liquor and gambling licences on their mobile device and the Service NSW website. Late last year the NSW government launched its first wave of digital licences. This saves licence holders from carrying and queuing for cards and allows them to easily update their details. Prior to this initiative, the state government was issuing more than 2.8m plastic licence cards each year. Digital licences have the potential to save tens of millions of dollars in printing alone.

The World Economic Forum states that if governments seize the open data opportunity now, they will not only survive this next phase of industrialisation by becoming more effective and transparent, but also excel as true supporters of innovation. Commitment to open data should also rebuild citizens’ trust in governments’ commitment to transparency and efficiency.

The Committee for Melbourne created its Melbourne 4.0 taskforce, working with its cross-sector membership to better understand the impact of the fourth industrial revolution on the city and to have a first mover advantage. That is why we are advocating for government to pick up the pace in releasing big data, in a cheap and accessible format, to strengthen Melbourne and Victoria’s – and Australia’s – competitive economic edge.

Our cities’ future prosperity and liveability depends on our ability to anticipate and manage global technological disruption while making better use of our considerable assets to effectively compete with other global smart cities. Technological disruption will fundamentally transform the way we work, live and do business. Optimal use of technology, including the broadest possible access to open data can be our greatest asset in ensuring that we continue to flourish in the Asia Pacific, the world’s fastest growing region.