Data Sharing: Whether it’s a new frontier or Fool’s chore?

Just weeks ago, the EU (European Union) Parliament and Council reached a point of agreement on the latest Data Governance Act (DGA) that presents a framework for sharing specifically industrial data across the bloc

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Data Sharing: Whether it’s a new frontier or Fool’s chore?

The data sharing talk is growing rapidly, as organizations view beyond datasets that are internal towards gripping external data to rapidly grow the reach of their market, state unique challenges, or go beyond to optimize their business.

Just weeks ago, the EU (European Union) Parliament and Council reached a point of agreement on the latest Data Governance Act (DGA) that presents a framework for sharing specifically industrial data across the bloc. Especially, it states the rules for trading data and gives a mechanism for reusing public sector data.

Also Read: Strategic Need for Development of Digital Assets and Regulation of Data Centres in India

While stating to the media, Angelika Niebler who is the leading negotiator shared that the goal of the DGA is to lay a foundation for a fair data economy that the business and people can solely trust. As data sharing is almost flourishing, the hope is that it shall stimulate recent business models and spur social innovation.

The agreement is recently subject to final approval by the council of the European Union and the European Parliament.

The setting of data exchanges

China has already gone ahead by putting up the mechanism for commercial data sharing, while the EU is solely focused on achieving the legislation right first.

The Shanghai Data Exchange went live last month with an initial offering of almost 20 data products which was offered for trading with a starting batch of 100 enterprises signing up as data merchants. The Exchange will probably incorporate services like data compliance consultation, quality assessment, and asset valuation.

This is certainly not a Lassez-fair exchange of data though- there are guidelines in place for the good use of data. For instance, a recent trading system makes sure that a transaction shall not be conducted if the purchaser of data can’t explain the exact scenario in which the data shall be used.

One even presumes that the additional layer of data that is protected shall see more organizations join, instead of crackling out like earlier data exchanges in China had.

The initiatives of data sharing are not at all limited to governments, however. Last year, Snowflake which is a cloud data warehousing firm unveiled its Data Cloud ecosystem for users of Snowflake to share and exchange data.

In September while speaking separately at a physical roundtable event, Geoff Soon who is the managing director of South Asia at Snowflake shortly highlighted its advantages: “[With Data Cloud] we are leveraging the network effect [in the cloud] to allow our customers to seamlessly and securely share data with each other.”

The challenges

Though data sharing sounds tempting, there remain important issues to be overcome. Apart from the legal hurdles and making sure of adequate protection of end-user data, data sharing presupposes the availability of nice quality data- that is not necessarily true for several organizations.

Moreover, there is the issue of abuse, stemming from the very fact that data is not a physical item that can be recovered once shared. Even internally within organizations, users or departments are stated to hang on to data beyond their actual use.

Organizations would even be concerned about competitors who are gaining an unfair advantage through access to several of these data. Stating this concern calls for a complex analysis that needs the balancing of several elements like business objectives, measurable benefits, and operationalizing the real sharing of data to reduce overheads and even prevent oversharing.

Advantages of data sharing

Businesses can collaborate using data for a start to develop new technologies, insights, and capabilities which they would otherwise be not able to solve. One interesting possibility is a hackathon, where external data scientists given certain access to the data are tasked to work on problems explained by industry problem owners for a period that is fixed, say, a week.

Supply chain optimization is a prime candidate for the optimization of business. By launching a data-sharing platform that is utilized by supply chain partners, Airbus was able to raise supply chain efficiency – design processes that used to take several weeks were reduced to a matter of hours.

Lastly, the availability of data that is trusted makes it easier to benchmark organizations and state sector-specific challenges. This shall range from enhancing safety within specific industries to making, sure enough, capacity on the national grid as nations transit towards renewable energy.

We are at the very beginning of the data journey, and there stays important hurdles to overcome. But enough businesses and governments are viewing advantages and are making a move towards making the groundwork for sustainable data sharing.

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Data Sharing: Whether it’s a new frontier or Fool’s chore?
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Just weeks ago, the EU (European Union) Parliament and Council reached a point of agreement on the latest Data Governance Act (DGA) that presents a framework for sharing specifically industrial data across the bloc
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THE POLICY TIMES
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