Sharing business data is the practice of making your company’s important link internal and external data available for collaboration, innovation and analysis. It’s a powerful approach that can deliver real-world benefits to your organization. However, it’s not without its challenges and risks.

Many companies aren’t able to make the most of data due to a lack of resources or time. Cloud-based technology has eliminated these barriers, allowing companies to share data on a massive scale and enabling new business models. As the world becomes more connected and connected, the ability to seamlessly share information and insights will to drive more data-driven decision-making. More insights that positively impact the business will increase the sharing of data, which will create a a positive feedback loop.

Companies that make access to data and insight a top priority are more agile, and better able to make the most of opportunities and respond swiftly to threats. Additionally, more informed data-driven decisions enhance the quality of products and services. General Electric’s GE Digital program, for example, is a way to share information with service suppliers about its equipment and machine to improve performance and reduce downtime.

Developing and maintaining an effective data-sharing plan requires consistency in policies with clear tools and processes that are consistently adhered to. Security concerns are a top challenge, as data must be secured from intrusions or breaches that are not authorized and in compliance with applicable laws. It’s also essential to prioritize data quality assurance and provide documents for consumers of data so they can make informed choices.