MOST ORGANIZATIONS have learned how to share data tactically. They've put technical infrastructure and processes in place so that they can easily transfer data when necessary to M comply with regulations, execute transactions, or provide a service. But far fewer companies have begun to explore the opportunities created by a more strategic approach to data sharing.
In today's digital economy, business leaders need a data-sharing strategy to pursue novel digital solutions and move in new business directions. Strategic data-sharing practices allow an organization to share data quickly and with control for specific opportunities with specific partners, and to share it repeatedly, with an emphasis on value creation. As strategic data-sharing practices mature over time, purposeful, fast, and creative data sharing becomes the basis for business model innovation and the resulting payoffs.
Energy management and industrial automation company Schneider Electric is a case in point. It uses its internet of things platform to share data with its business customers in order to discover and deliver energy management solutions.¹ In 2016, company leaders saw IoT as a significant opportunity to develop new products and services based on the monitoring and analysis of connected assets. Along with the data-sharing platform, they developed a tool to collect both structured and unstructured data about the company's products in use at a customer site, drawing on sensor data and maintenance logs. Using a dynamic risk monitoring algorithm, the tool detects operating risks and their sources, and it allows facility managers who purchase the product to manage the performance of assets themselves or use a Schneider Electric service center.
This story is from the Spring 2023 edition of MIT Sloan Management Review.
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This story is from the Spring 2023 edition of MIT Sloan Management Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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