Data ecosystem collaboration can lead to financial gains of up to 9% of annual revenue

2>Rising interest in monetising data

In terms of top business drivers for participating in data ecosystems, 54% of organisations state a rising interest in monetising data. This comes as data ecosystems have made a significant impact on multiple fronts across organisations: improving customer satisfaction by 15%, increasing operational productivity/efficiency by 14%, and reducing costs by 11% year-on-year. As such, most organisations are optimistic about data ecosystems and expect to see the same level of benefits in the next three years.

Organisations are planning to accelerate data sharing in ecosystems

Driven by the realisation of business value, the study also found that one in four organisations will invest upwards of $50 million in data ecosystems[3] in the next two to three years; 76% will invest upwards of $10 million. On average, there will be an investment of $40 million per organisation. Investment varies greatly among sectors and countries: 55% of telecommunications organisations will invest over $50 million, while 43% of banking firms will do so. Healthcare and government entities, however, lag, with 18% and 7% respectively investing over $50 million. Meanwhile the US and the UK will be the biggest spenders, with more than one in three organisations in both regions spending over $50 million over the next three years.

Nearly half of the surveyed organisations (48%) are looking to enter new ecosystems or initiatives, and 84% of them plan to do so within the next three years. More than one in three organisations (36%) are working on strengthening their existing ecosystem initiatives.

While the financial benefits are clear, 61% organisations are still engaging in low-value, traditional ecosystems that involve relatively little collaboration and simple types of data sharing. Only 14% of organisations have adopted the most collaborative ecosystem models and complex types of data sharing.

 Data ecosystems to drive sustainability agenda

Among the internal factors driving change, 60% of organisations cite willingness to make progress on sustainable development goals or climate change as a top driver to take part in data ecosystems. Among organisations that want to create societal and sustainability impact with data ecosystems, a majority of organisations focus on engaging in data ecosystems for sustainable development from an environmental, social, and governance (ESG) perspective (73%) and on enabling social inclusion for marginalised sections of society (65%).

Christina Poirson, Group Chief Data Officer at Société Générale explains, “Data is much more than an asset to us and we are organised to maximise its potential through data sharing. We are witnessing a strong regulatory push in the EU to establish smoother data sharing systems in the financial services sector. The robust and comprehensive data governance structures that we have put in place while protecting sensitive customer data are in line with this evolving regulation. They not only contribute to smoother data exchange with our ecosystem partners but also unlock greater benefits for our clients.”

Zhiwei Jiang, CEO of Insights & Data at Capgemini states: “Data sits at the epicenter of innovation. Organisations that are already untapping its potential are seeing the clear benefits that data-sharing can bring. They are now looking beyond traditional sources of data, such as data aggregators and data disruptors[4], to find relevant, good-quality insights that further drive new ideas, business decisions, and most importantly, to extend their competitive advantage.”

Emerging forms of data sharing further allow organisations to act in a less intrusive manner and are designed to work with anonymised data. However, 56% of organisations cite a lack of sharing platforms that can control access rights as the top technology challenge to embarking upon and scaling their data-sharing initiatives. Capgemini advises a roadmap of five essential steps, involving:

• Formulating a data ecosystem strategy
• Making key design decision pertaining to the ecosystem
• Devising a clear implantation plan and kicking it off
• Sustaining the advantage
• Proactively addressing privacy, ethics, trust, and regulatory requirements.

Methodology

Capgemini’s findings are based on a primary survey of 750 senior executives (director-level and above) from organisations with global annual revenue exceeding USD $1 billion across the US, Europe, and APAC who are currently involved in external data sharing. In addition, Capgemini also conducted in-depth interviews with 30 industry executives and academics.

The research builds on Capgemini’s 2020 study “The data powered enterprise”, which explored data practices in relation to organisational culture.

To read the full report, click here.

About Capgemini

Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. The Group is guided everyday by its purpose of unleashing human energy through technology for an inclusive and sustainable future. It is a responsible and diverse organisation of 270,000 team members in nearly 50 countries. With its strong 50 year heritage and deep industry expertise, Capgemini is trusted by its clients to address the entire breadth of their business needs, from strategy and design to operations, fueled by the fast evolving and innovative world of cloud, data, AI, connectivity, software, digital engineering and platforms. The Group reported in 2020 global revenues of €16 billion.

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About the Capgemini Research Institute

The Capgemini Research Institute is Capgemini’s in-house think-tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners. The Institute has dedicated research centers in India, Singapore, the United Kingdom and the United States. It was recently ranked #1 in the world for the quality of its research by independent analysts.

Visit us at https://www.capgemini.com/gb-en/researchinstitute/

[1] Data ecosystems are partnerships between organisations that allow them to share relevant data and insights under locally applicable regulations, creating new value for all participants.

[2] Financial gains include new revenue, improved productivity, and cost savings.

[3] Organisations with global revenue exceeding USD $1 billion across the US, Europe, and APAC who are currently involved in external data sharing

[4] An organisation that has, or aggregates, data that holds directs value for its client. Data, or the insights derived from it, are often commoditised. This includes hyperscalers such as Google, Amazon, and Facebook.