All data is required to improve the ability to detect weak signals, analyze behavior, fight against fraud, and develop new services.
Frederic Fourquet is MEGA International's data intelligence product marketing manager. He says that this is the main objective of the Data Governance Act, (DGA), recently approved by the European Council.
It organizes data exchanges to increase performance and innovate for companies.
A “Data-Driven” Approach
The Data Governance Act, a European regulation on data management, aims to transform private and public organizations' practices.
The act is designed to regulate and organize the future data-sharing market using fundamental principles such as security, compliance, sovereignty, and ethics.
The European Commission wants the end of the "Wild West", which global data exchange has become, and to make it a pillar of the economy.
This new regulatory framework has four main goals: to promote the reuse of public sector data; to create a new model for data intermediation business, to encourage altruism, and to establish a committee to promote data innovation.
The Data Governance Act came into effect on 23 June 2022. It will apply from September 2023 after a grace period of 15 months.
This revolution is already being led by some European countries and businesses. This opportunity will be available to all players, private and public, so prepare now.
Europe was a leader in Data Privacy, with the GDPR. This regulation was a model for other regulations around the world, such as the California Consumer Privacy Act (CCPA), and Brazil's LGPD.
The Data Governance Act, which focuses on ethical data sharing and refines them, could have the same effect outside Europe.
Establishing a Trusted Data Environment
The Data Governance Act provides a promising incentive environment. It is based on the creation of a framework for data exchange (Data Exchange). It creates new roles on both the supply and control sides of data exchange.
Registered data intermediaries are a new certification for data-sharing service providers. A registered data intermediary protects data circulation and is subject to important technical and ethical obligations.
This ensures trust and transparency between all parties, which is crucial to ensure the European Data Exchange market is trustworthy and adheres to high data usage standards.
Create Value by Regulating Exchanges
Globally, the expected benefits of data usage are only innovative products or services that generate at least 1.5% to 2.5% more GDP in the European market.
New opportunities will be available for companies to compete in international markets and become innovator champions.
Companies will be able to access data more easily and at lower costs, which will allow them to increase R&D and data-driven Ai.
This will be especially beneficial for small and medium-sized companies that previously couldn't afford or have access to these data resources.
Coverage of All Data Types
The Data Governance Act covers the sharing of all data, personal or non-personal. It also encourages all organizations, public and private, to create and facilitate new exchanges.
These data topics have been historically neglected and may offer new opportunities if handled ethically and securely.
DGA, therefore, relies on the General Data Protection Regulation (GDPR). The same protections that are available for personal data as for non-personal data include anonymization and consent.
The DGA's new incentive model is not a requirement that anyone make their data freely available. Instead, each participant can set the conditions for reusing their data.
Benefits of DGA (Data Governance Act)
Institutions can facilitate and develop Data Exchange but only companies have the keys that will allow them to take advantage of this new data act.
Everyone must organize their data governance and work towards industrialization. It is not an easy task to become part of this data-driven approach.
There are many challenges to be overcome, including cybersecurity, compliance, cybersecurity, the identification of innovation areas, and the selection of and adoption of technological solutions.
DGA is a new organization that focuses on companies and data exchange. The experiment has shown that innovation is always born from micro-projects that are driven by business lines.
It is fragmented until one topic stands out. Then, senior management will take over.
Industrialized Data Governance Approach
A structured approach to data governance allows for the selection of new data that aligns with the company's strategic objectives. This data can then be monetized.
An organization must answer these questions to be able to achieve this success: What new data do you need? Which artificial intelligence projects are in my company? What data path should I choose? Who oversees and organizes data governance?
It's useless to build a large market for data if companies don't know how to identify their areas of innovation in data, if they lack the data analysis and processing tools and if their data are not qualified or exploited.
After answering the above questions, the next step is to appoint a Chief Data Officer (CDO). The first task in building a data governance network is to create a data catalog to automatically generate a glossary of business terms to allow the entire community to use a common business language.
The CDO will need to identify the industries that are interested in data monetization and determine the price for the data sets.
This is a good thing because it will create new trusted platforms that can be trusted to distribute data, as well as its innovation capabilities and ability to assist stakeholders in making smarter, data-driven decisions.