Posted: 30 Aug. 2022

Data sharing

The promising trend

Are you planning a trip to paradise? You will most likely reserve a nice accommodation via Booking.com or a similar app. This is made possible through data-sharing. The Booking.com app is a "third party" that you consult rather than directly approaching the property itself. Booking.com obtains data on available accommodations through an open interface made available by hotels, condos, motels, etc. These accommodations may also sell their data to other stakeholders, such as Expedia.com.

 

Data is no longer just an asset for better decision-making, but is now also an asset that can be leveraged to advance your day-to-day operations. The combination of modern data-sharing and privacy-protection technologies is changing business strategies from "no sharing data " to " must share data". Advances in data sharing technologies enable us to share data by buying and selling valuable information in cloud-based marketplaces. Due to all these developments, data sharing is a promising trend.

Data is no longer just an asset for better decision-making, but is now also an asset that can be leveraged to advance your day-to-day operations

Data -sharing is thriving in the business world
Though the data sharing trend is still in its early stages, it is skyrocketing with well-known cloud providers such as Google and Salesforce, racing to make their mark in the market. From experience, companies have learned that as technology advances, they must advance with it in order to survive.

 

As data sharing continues to advance, more companies are expected to engage in data partnerships, even with their competitors. Sharing data with competitors seems challenging, however, it can be very valuable. Companies can broaden their research collaboration and knowledge while increasing efficiency and reducing costs. According to a survey conducted by Gartner, a renowned management consulting firm, companies that adopt data sharing will have 50 percent more revenue-generating business opportunities by 2023.

 

Many organizations have discouraged data sharing for years, but it is now seen as a no-brainer to use data to achieve business goals and solve challenges. The pandemic is a good example of the benefits of data sharing. Major competitors in the pharmaceutical industry shared their research data through data-sharing platforms and digital technologies, such as Blockchain, to find a solution. They used Blockchain to protect confidential data, thus, keep it safe. Today, data sharing is essential in the further development of the pharmaceutical industry.

 

Uber is another good example of an organization that has become successful through data sharing. Uber has launched a new product called 'Uber-Movement', which collects GPS data from drivers with the purpose of sharing these insights with cities. Uber gathers data on how, where and why people move. By sharing this data with cities, they can, for example, improve road safety and reduce CO2 emissions. Uber generates revenue from their data and cities benefit from the easily accessible data that provides insight for urban planning.

 

Data-sharing while preserving privacy and security
Today, new approaches and technological advances are making data-sharing and external data acquirement as easy and seamless as pushing a button. Data-sharing platforms allow companies to share data while maintaining control over the data. These platforms are user-friendly and are set up as a service model, where users pay a subscription fee. Data shared on these platforms are provided securely, buyers get to so see a custom view of the data needed for their analysis. 

 

Globally, there is a growing concern about ensuring privacy and data security. These factors must be taken into account as they pose a threat to the data-sharing trend. Advances in data sharing technologies not only make it more efficient to share data, but also make it possible to better protect data and ensure privacy. These systems make it possible, for example, to encrypt (secure) data. Furthermore, it is important to create a culture in which the sharing of necessary data is core and not the possession of external data. This culture stands for the secure collection of data for purposeful use only.

Data sharing plays a key role in the European digital transformation. On April 6, 2022, the European Parliament passed the European Data Governance Act, which creates an integrated framework for data sharing in the European Union. The legislation commands data sharing necessities to enable data exchange between companies, public institutions and users. The European Commission is focused on a standardized solution that obliges companies (with the exception of small and medium-sized enterprises) to adapt to the new legislation. The aim is to stimulate data sharing in the European Union to give companies more access to data that will ultimately lead to new and better developments.

Data-sharing is the way forward
How the data sharing market will develop in the future is still uncertain. However, as the demand for external data rises sharply, it is certain that the platform with the most efficient and user-friendly user functions will become a successful platform. It could well be that one platform becomes dominant in the market, just like Facebook or Google. Whichever shape the data-sharing platform market takes, this trend will most likely continue to evolve.

 

There are still barriers and challenges, but given the potential value of data sharing, these are anticipated to be bumps along the road towards a fundamentally new era of data sharing. Despite advances in technology, a company's long-standing culture or mindset cannot be changed overnight. Leaders must start by introducing trust in the process to achieve value from collected and shared data. Organizations that embrace data sharing are predicted to outperform their competitors.

 

You have a valuable asset on your server, are you ready to optimize your data?

Author

Jacinta da Silva Correia

Jacinta da Silva Correia

Senior Consultant | BPS Consulting & Process Optimization

Jacinta da Silva Correia, works as a Senior Consultant within the BPS Consulting & Process Optimization team of Deloitte Dutch Caribbean and focuses on Digital & Technology. She supports companies as a consultant and project manager in issues related to  data analytics, technological process optimizations and market research. She has experience working on projects that  require her digital, analytical, creative, strategic and marketing skills at practice.