Data sharing is the ability to distribute identical sets of data resources to multiple users or applications while maintaining data integrity for all entities consuming the data. It is an essential part of modern business and, according to a Gartner study, companies that support data sharing outperform their peers on most business value indicators.
Traditionally, data sharing has been limited to the transfer of files, spreadsheets, and other documents between individual businesses. However, with the advent of cloud services, it has evolved into a dynamic process that is real-time and enables unified access to a single version of the truth across departments within an organization. Additionally, it has become a tool that allows companies to interact with outside sources in a safe and secure manner to enhance their data analytics capabilities and create new revenue stream possibilities.
In a business setting, data sharing can provide a wealth of benefits that reduce inefficiencies, foster collaboration, and unlock growth opportunities. In fact, it can be as important to a company’s bottom line as it is to its customers’ satisfaction.
The key to leveraging the power of data in a business is to ensure that it is accessible to the right people at the right time, so they can make well-informed decisions and improve operational efficiency. This can be done by implementing a data-sharing infrastructure, which is the foundation for effective and sustainable enterprise-wide data management.
As a result, the business value of data sharing is tremendous, and it’s not surprising that Gartner believes that by 2023, “firms that support data sharing will outperform their counterparts on most business value indicators.” It can be used to improve decision-making, increase transparency, speed up innovation, widen analytical scope, enable new products, and much more.
For example, if a clothing retailer was able to share its customer data with the local tailors that alter its apparel, it would be able to see patterns in its customers’ sizes and fit preferences, and it could add a variety of different color options to its catalog. Or, if banks in developing regions pooled anonymized credit risk data, it would help them develop a more comprehensive risk assessment system.
Other industries can also benefit from a secure, collaborative data ecosystem. Imagine if all the suppliers in a supply chain were able to share their live data for rapid analysis and decision-making, or if the medical community could pool anonymized patient records to identify potential lifesaving cures.
It is important to note that while data sharing is a powerful business practice, there are some risks associated with it, especially in an age where privacy standards are constantly changing and high-profile data breaches occur frequently. As a result, it’s crucial for all organizations to carefully weigh the risks against the benefits of data sharing. By taking the time to understand the risks and benefits, a company can implement effective measures to protect its data. By following these tips, a business can be confident that its data is being shared securely and effectively.