3 questions for Boris Otto on data spaces and a global data economy

Prof. Dr. Otto, Director of the Fraunhofer ISST and Head of Chair of Industrial Information Management at the Technical University of Dortmund

1. What is meant by sovereign data spaces, which relevant players can be identified and what potential do you see for these data spaces in the context of Industry 4.0?

Sovereign data spaces enable companies to exchange data with partners in a secure, controlled and trustworthy manner without giving up their data sovereignty. This is essential for data-driven collaboration in networked value chains, as we are increasingly seeing in the context of Industry 4.0: The goals of Industry 4.0 are to increase the competitiveness, resilience and sustainability of manufacturing companies. The success factor for this is networking, specifically the networking of products, processes and companies, for which data is the key resource. Data must not only be managed within the company in terms of cost, time and quality, but it must also be shared and used in industrial ecosystems so that it can realise its full potential benefits. After all, data that is not utilised has no value. However, due to the high value and innovation potential of industrial data, data sharing must not be unconditional, but must be carried out in a way that protects the data sovereignty of the data provider and the trust of the stakeholders involved. In addition to large industrial companies, the relevant stakeholders also include SMEs, research institutions and public authorities. Initiatives such as GAIA-X, Catena-X and, of course, the International Data Spaces Association (IDSA) play a central role, focussing on interoperability and open standards in order to create a trustworthy data ecosystem.

The potential of such sovereign data spaces is enormous, ranging from more efficient processes and improved resilience to the development of completely new data-based business models. Especially in Industry 4.0 with its decentralised, dynamic structure, sovereign data spaces are a decisive factor for innovation and competitiveness.

Our approach is clear: data spaces create the technological basis for value creation from data, while complementary governance and business models ensure a fair distribution of the benefits among all stakeholders. This is the only way to create a genuine European data market.

2. How do you assess the current status of the development of data spaces in German industry and what challenges need to be addressed through suitable strategies, research and implementation activities, particularly in technological, economic and institutional terms?

Germany has certainly taken on a pioneering role with projects such as Catena-X or GAIA-X, but we are still at the beginning. Many approaches are currently in pilot status – broad industrial scaling is still pending. From a technological perspective, it is primarily about creating interoperable, scalable architectures that can be integrated into existing systems. Economically, there is often still a lack of clear business cases – the barrier to entry is particularly high for small and medium-sized companies. There is also the data readiness of German companies and institutions. Many are not yet equipped to make their data available. Institutionally, there needs to be more coordination between initiatives, funding programmes and regulatory frameworks. Targeted measures can help here, such as the promotion of domain-specific data spaces, open source tools to simplify implementation, clear governance structures and, of course, international standardisation to avoid national silos. Currently, data spaces often exist as isolated islands with no connection to each other – even between individual initiatives. Our vision is a comprehensive networking of all data rooms and thus real, complete interoperability.

3. The International Data Spaces Association was developed under your leadership, which you are actively driving forward as Deputy Chairman. How can a global data economy be achieved and how can different national activities, approaches and initiatives be harmonised?

Our goal at IDSA is to create an internationally compatible basis for sovereign data exchange with an open, standardised architecture model – the IDS Reference Architecture Model. A global data economy can only emerge if we apply the same principles of data sovereignty, interoperability and trust across national borders. The challenge is to coordinate national and sectoral initiatives without losing their individual strengths. This requires dialogue, common standards and clear governance at both European and global level. This is exactly what we are working on in the IDSA, together with partners from over 20 countries and numerous industries. Harmonisation can only succeed through cooperation – technological, regulatory and cultural. But the need is clear: in a globalised industry, data spaces are the key to making collaboration scalable, secure and sustainable.

3 questions for Boris Otto on data spaces and a global data economy

1. What is meant by sovereign data spaces, which relevant players can be identified and what potential do you see for these data spaces in the context of Industry 4.0?

2. How do you assess the current status of the development of data spaces in German industry and what challenges need to be addressed through suitable strategies, research and implementation activities, particularly in technological, economic and institutional terms?

3. The International Data Spaces Association was developed under your leadership, which you are actively driving forward as Deputy Chairman. How can a global data economy be achieved and how can different national activities, approaches and initiatives be harmonised?

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