Market leadership is most frequently attained when an organisation establishes a high level of trust in the data from its customers, its own business processes and across its partner ecosystem, says information technology multinational IBM Institute for Business Value director Ian Fletcher.

While the volumes of data produced by people, devices and companies are growing significantly in all economies and societies, companies that have organisationwide data acquisition, governance and management policies in place most effectively capitalise on the data that they have and acquire.

Further, transparency, reciprocity and accountability are becoming increasingly critical elements to leverage data – especially personal data. Companies that know where their data and that of customers and partners reside how data is protected, used, stored or deleted can provide visibility and traceability and, thereby, secure trust that they are managing the data correctly and responsibly.

IBM’s 2020 C-Suite study, titled ‘Build Your Trust Advantage’, found that 91% of the leaders of companies embracing the digital economy strongly believe that data helps create a strategic advantage in strengthening their level of customer trust and bottom lines.

“Building trust in customer relationships is a strategic imperative and requires hard work to earn and maintain it. However, building trusted data processes extends beyond customer relationships, as the new sharing and platform economy and the changes to business models will necessitate creating human-technology partnerships to derive value from and monetise the data flowing through companies’ systems,” says Fletcher.

Only about 11% of the companies surveyed in South Africa can be considered to have integrated business and data strategies, and can readily extract value from data.

About 88% of South African companies have either considered monetising data or integrating data into their strategies and, compared with other study participants, are still evaluating their role in the new data-driven world.

Fletcher emphasises that these companies must inculcate or have an embedded culture that recognises data as a strategic asset, and which must be managed in line with the requisite ethical and security principles and practices, as befits a valuable business asset.

Another prediction is that companies will no longer be able to depend on individuals or companies sharing their data, unless there is a clear understanding and transparency of what a company will do with the data and how it will be protected, he adds.

“In the near future, we can expect a mini revolution – beyond the data-driven digital economy – where individuals will demand self-sovereignty over their data. This is where data, by necessity, will become a measurable asset – data becomes the money organisations have to invest to produce value and returns,” says Fletcher.

Further, the study also revealed an emphasis on the importance of creating trustworthy ecosystems. Data that simply stays within the organisation is more likely to drift out of date than to grow in value, he adds.

Having an ecosystem in place that provides a structured, transparent and traceable way of exchanging data becomes crucial, which is envisioned as part of the platform or sharing economy. One company will not be able to provide all the services and will have to interface securely with a diverse range of service providers, partners and competitors, he explains.

“Leading organisations are liberating their data, while derisking data exchanges in a shared ecosystem, allowing it to circulate widely without sacrificing their responsibility to secure permissions and safeguard it.”

These companies are ahead of their peers in acquiring and sharing data extensively with network partners, as well as integrating new modes of monetisation into their data strategies, he says.

“While the study focuses on the need for transparency in how companies handle customer data, it also highlights the importance of trusting data that resides in organisations. It is crucial for a company to ensure that its internal data is accurate and clean to make the best-informed decisions on important business ventures, such as developing new business models and entering new or emerging markets,” concludes Fletcher.