Sharing data with other companies – a justified hype?
Data sharing is fully in line with the trend. The concept is simple: two or more business partners exchange data with each other to ensure an optimized and flexible joint workflow. In an increasingly complex working environment with interdisciplinary cooperation and cross-company value chains, this is absolutely necessary to facilitate cooperation and optimize work processes.
However, despite its necessity, data sharing also brings certain disadvantages with it. Especially larger companies with conservative structures question the measures with great scepticism. This often leads to a very low willingness to share.
The biggest concerns with data sharing
Finally, data sharing also has some potential drawbacks – some of the biggest concerns, according to a study by PwC, are listed here.
Lack of security
For a reason do we call this fear first. Data sharing is often set up via central data pools where all participating companies can provide and access data. With central data pools, the participating companies have to hand over the security of their most sensitive data – and rely on an external provider. Many agreements on data sharing are already failing here. After all, it is difficult to find a data pool provider that meets the security standards of all participants. This problem becomes clearer when you consider that a huge amount of sensitive data can be accessed due to a single data leak in the data pool. Whose hands would you like to put such a responsibility in? 57% of the companies surveyed by pwc fear that their most important data and thus also important company secrets will fall into the wrong hands.
Lack of traceability
59% of the respondents stated that the lack of traceability of data access was a cause for concern. In concrete terms, this means that once the sensitive data has been shared with another company or uploaded into a data pool, companies can no longer trace who is actually reading their data and who is working with it.
Unclearly formulated responsibilities
In an estimated 99 out of 100 cases, there are no problems with data sharing, the participants are trustworthy, and the data is used properly. But what happens in this 1 case out of 100? Due to the lack of traceability, no one can really be held accountable – and the company is usually left with the damage whose data has been leaked. After all, there is only a very small chance that the real culprit can be identified. 55% of respondents said they were sceptical about responsibilities
Surrender of data sovereignty
All or nothing! When using a data pool, you do not have the detailed choice of which data you want to release at a specific time to whom. Rather, all data necessary for operation is always visible to all participants. You thus lose control over your important data streams.
Possibility of technical errors
A standstill in your production chain leads to delays, lower delivered quantities and ultimately almost guaranteed financial losses. That’s bad enough if the mistake happens in your company and part of your production stops for a few hours. Worse still, if the error happens at an external data pool provider, your entire production is stopped, and you can’t do anything about it. A horror scenario that can keep you awake.
Dependence on external suppliers
In general, dependency on an external provider is the biggest disadvantage of data sharing via a data pool. Its technical stability and security standards are one thing, but you also trust the provider in terms of its innovative strength and economic stability. These are a number of risk factors that, in the worst case, can lead to great damage in your company.
Data Sharing reinvented – how to avoid the fears of your cooperation partners
You now know some of the biggest concerns many companies have about data sharing. Would you dare to resolve all these concerns – and put your finger on the fact that the above issues will never occur?
Then we can reassure you – because all of these problems occur exclusively with data sharing via a central data pool. We, at Tributech, therefore provide you a decentralized solution with which you can significantly increase the willingness to share data with your business partners – with the same flexibility, speed and all the technical features. Only one thing is omitted: the security gaps.
We rely on peer-to-peer data sharing for our customers. Data is not stored centrally on an external server – it is only exchanged between the two parties. In addition, only data that is actually needed for the next work process is exchanged, and only to the participant who needs it.
This is how you as a company ensure that …
… in the event of a data leak huge amounts of sensitive data can never be disclosed. Only those data can be tapped that were exchanged at the time of the hack.
… you always retain data sovereignty and only release data that is actually needed by your business partners.
… you are never technically dependent on an external provider – and the continuation of your production is entirely in your hands.
… even in the event of damage, you can trace who caused it. In this way you can identify sources of error and, if necessary, also hold the party responsible for the damage accountable. A specially developed module of our Tributech software makes this possible.
And last but not least: Your business partners will rather agree to exchange their sensitive data with you, if they are not dependent on any external provider and keep control over who gets to see their data.
In short: With a decentralized solution for peer-to-peer data sharing, you increase the willingness to share data with business partners over and over.
Curious? Talk to us!
The rising amount of collected IoT data, the trend towards data-based decision-making and new data services increase the risk of being vulnerable to manipulation. Therefore, companies should implement countermeasures to prevent IoT data form being tampered and build their data services and IoT platform on a trustable foundation.
Nothing new came forth but it would have enhanced prior knowledge if considered before.
A few weeks after the outbreak of the covid-19 pandemic, it makes sense to draw a first conclusion of what we’ve seen and heard from industry players and we tried to summarize some of our core findings.
Alexander Sztatecsny, who has been working in different areas of Digitalization across the value chain for most of his business life, has recently joined the team of Tributech as COO and Managing Partner and will work with the team to elevate the business to the next level.