Many businesses are embracing the sharing of data, and are seeing tangible benefits for their organisations and across their entire sectors. Josh D’Addario, Consultant at the ODI, has been talking to these organisations and researching the benefits. Josh shares his top seven reasons why businesses should be sharing data.
1. Open innovation
Open innovation is about using data as a means of collaboration to bring new technology, insights and capabilities to solve problems that an organisation can’t solve by itself.
Through the Data Pitch open innovation programme, data user OBUU partnered with data provider Greiner, and discovered that they could achieve a reduction of fixed asset investment of around 35%, resulting in a significant cost saving.
2. Supply chain optimisation
Sharing data allows supply chains to become much more efficient.
Take aerospace manufacturing, for example. design processes that used to require weeks to complete can now be completed in a matter of hours. Multinational aerospace firms have teamed up with supply chain partners to launch a data sharing platform to increase supply chain efficiency and reduce aircraft development costs for airplane manufacturers.
3. Addressing sector challenges
There is an appetite in some sectors for companies to share data with each other, in order to solve common challenges.
The UK energy sector faces a major challenge with balancing the supply and demand of electricity, which costs up to £1bn a year, and with the adoption of renewable technology becoming more commonplace, this could rise to £2bn in the next five years. Renewable energy companies are sharing data with trusted data intermediaries to improve forecasts around solar energy generation, to make renewable energy a more cost effective option.
4. Improving market reach
Sharing data about products and services is an increasingly important part of sales and marketing opportunities, helping businesses to improve their market reach.
Health and physical activity companies have been publishing standardised, open data about opportunities to be physically active under the OpenActive initiative, e.g. the time and location of gym classes or swimming lessons, to explore the potential of reaching new audiences.
5. Benchmarking and insights
Companies in the shipping sector share safety data with trusted data intermediaries in order to gain valuable operating insights in order to improve safety across the sector.
By aggregating and analysing this safety data, these firms have helped to reduce lifeboat accidents by 72%, engine room fires by 65% and bunker spills by 25%.
6. Regulated and proactive data sharing
Sharing data can be a legal requirement in some industries with businesses required to share with regulators, with other companies or with the public.
But beyond being a legal requirement, proactive and regulated data sharing often creates benefits for the organisations that share the data, by increasing trust and spurring innovation.
In the pharmaceutical industry, companies are required to share information with regulators about their products and how they test them. There is also a push towards sharing data more widely to support addressing large scale challenges, such as antimicrobial resistance.
7. Demonstrating trustworthiness
Last, but definitely not least, promoting an open and transparent approach has provided reputational benefits and a competitive advantage..
For biotechnology company Syngenta, the open publishing of data has increased understanding of the company’s data amongst Syngenta’s employees, has helped it build connections in adjacent sectors and engage with its supply chain partners better.
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About the ODI
The ODI was co-founded in 2012 by the inventor of the web Sir Tim Berners-Lee and artificial intelligence expert Sir Nigel Shadbolt to show the value of open data, and to advocate for the innovative use of open data to affect positive change across the globe.
We’re an independent, non-profit, non-partisan company that, since our creation, has welcomed high-profile board members including Mumsnet founder Justine Roberts, Lastminute.com founder Baroness Martha Lane Fox and former European Commissioner Neelie Kroes.
Headquartered in London, with an international reach, hundreds of members, thousands of people trained, dozens of startups incubated, and a convening space based in the heart of London’s thriving Shoreditch area, we invite everyone interested in developing with data – whether on an individual, organisational or global level – to get in touch.