Data or Die – What is your (Data) Strategy?

“What Is Strategy?” from Michael E. Porter is the title of a very famous article published in the Harvard Business Review in 1996. On its first page, it both states and questions, “Positioning – once the heart of of strategy – is rejected as too static for today′s dynamic markets and changing technologies!”

Almost 30 years later, the essence of his article and his masterpiece work on strategy remains as relevant as ever, still at the core of corporate strategic thinking. In my opinion, the question should be elevated to: What is your DATA strategy?

Driven by data

In a business world that will undoubtedly be shaped and driven by data, these questions will be pivotal for a company's success and continued existence. The competitive advantage of a Data Strategy will be tremendous, game-changing, and disruptive! Moreover, it's highly likely that if you miss out on it, you won't be able to catch up, potentially losing your market position or even disappearing from the market. The winner will take it all!

Why is this the case?

Over the past decade, Digital Transformation has evolved from a buzzword into a fundamental force reshaping and disrupting businesses and everyday life on a global scale. There are many factors driving it. Here are my top five fundamental, critical, and accelerating factors:

1. Generative AI – accessible everywhere for everyone A unique game-changer and accelerator of digitization, artificial intelligence and machine learning (ML). With tools like ChatGPT, Microsoft Copilot, or GitHub, GenAI is accessible in almost all areas of a business, from anywhere and by anyone – equipped with entirely new capabilities. This substantially boosts productivity in various aspects of a company, including R&D, internal processes, software development, sales, and digital marketing. Furthermore, with the upcoming release of ChatGPT 4.5 & 5 on the horizon, the next revolutionary level is already emerging.
2. Continued accelerated global growth and impact of platforms Today, the top 100 global platforms are consistently growing their business volume, market share, and ecosystem power, encompassing a significant portion of the global GDP. Latest numbers show that 90% of these leading global platforms are situated in America and Asia, with the United States and China as the primary leading countries. Moreover, new platforms are emerging, particularly in the B2B sector, amassing vast amounts of data in the process.
3. The continued application of Moore’s Law and the increase in computing powerAt least for the next 10-15 years, we will see a continued and significant increase in computing power. Simultaneously, data storage and data exchange will become nearly cost-free. These advancements will further drive the development of cloud computing, edge computing, and their associated applications (including platforms, data mining, GenAI, AR/VR, the Metaverse, and more).
4. The rise and long-term success of technologically leading ecosystems Companies such as 苹果 , 微软 , 亚马逊 , and 阿里巴巴集团 have established themselves as long-term market leaders in platform-based ecosystems. In the industrial sector, companies like 施耐德电气 , 西门子 , Hitachi , Salesforce , 达索系统 , and 约翰迪尔 are also actively developing platform-based ecosystems. The combination of hardware products, software, and digital/I-IoT solutions is set to deliver significant customer benefits and will establish industry-leading ecosystems.
5. The potential power of quantum computing and the Industrial MetaverseWhile the industrial application of quantum computing might still take some time, Industrial Metaverse thinking, piloting, and implementation are already significantly advanced, bridging the physical and digital worlds. Siemens is among the major industrial promoters and driving forces behind this progress. To be very clear – both will happen!?

Just one of these technologies or business approaches is already disruptive – the combination is a revolution. And they all have one thing in common for their success:

They all need DATA!

Data is the new oil

Here is what makes data the business fuel of the 21st century. A lack of data leads to a lack or absence of SaaS solutions, platform businesses, and digital transformation. Smart factories become unattainable, and ecosystem strategies become impossible. To put it bluntly: Without a Data Strategy, there is no long-term business success!

Companies like Palantir Technologies and Celonis have long made data the core of their business models. When we listen to founders like Joe Lonsdale and Bastian Nominacher , it becomes clear that we are just beginning to tap into and explore the potential of data mining, data processing, GenAI, and business development.

The major platform and leading ecosystem companies excel in data collection, big data processing, and data mining, simultaneously pioneering new ways of monetizing data and creating innovative businesses. However, for the vast majority of companies worldwide, a Data & AI Strategy has yet to become a regular part of boardroom discussions and company strategies, and its success has not always matched expectations.

In a survey and article published by the Harvard Business Review titled “Data Strategy – The Missing Link in Artificial Intelligence-Enabled Transformation”, the statement of one participant hits the nail on the head:

“I can′t stress this enough: data or the lack of the right data strategy is the number one bottleneck to scaling or doing anything with AI.”

Putting data to work

From my perspective, the situation hasn't improved. When it comes to true data literacy, governance, and ownership, many companies are still significantly underperforming.

A data strategy should remain central to today's corporate discussions in the boardroom and CEO strategy development. DAIN Studios , a leading Finnish AI consulting firm and one of our ecosystem partners, has developed a comprehensive, yet practical, hands-on framework and approach for corporate data and AI strategy.

The key steps in this framework are:

1. Formulate your data strategy – How to win in a data-driven business?!
2. Understand the current state of your data & AI capabilities
3. Define and prioritize your roadmap
4. Execute the AI playbook rigorously

And from my point of view – regardless of what business you are in – advance your view on data and data management, and make the following thoughts part of your Data Strategy:

• Treat data as a product / Regard data as (one of) your key company assets
• Democratize data and create a data-first organization
• Organize data FAIR (Findable-Accessible-Interoperabel-Resuable)
• Provide state-of the-art data analytics and application technology
• Strengthen leadership & capabilities – e.g., with a Chief Data, Analytics & AI Officer

To sum it up, make data the core of your current business, new ventures, and ecosystem thinking.

Unlocking data’s potential

For us at K?rber , and for me as the CEO, the following questions are crucial to our future success:

• Potential – What is our and our customers’ future USP and competitive advantage in a data-driven business?
• People, Culture & Transformation – How to globally enable and mobilize for a data-first organization, driven by entrepreneurship, ownership and execution?
• Structure, Organization, Roadmap – How to set-up for agility, speed and results?

Digitization, AI, an advanced technology stack and an ecosystem transformation are part of our strategy for many years and embedded in our metrics. One of our goals – to realize 1/3 of our business in 2025 with software & digital solutions – is clearly defined, communicated and being executed – targeting 25% this year! With our AI First approach, we have founded some of the leading startups in our industries, e.g., FactoryPal , InspectifAI , and vaibe , all targeting substantial data and AI-driven productivity improvements for our customers. At the same time, we are establishing ecosystem partnerships with some of the world's most leading and innovative players, such as Microsoft, Accenture, Geek+, and many more. Through our strategic initiative 'Value for Data,' we are exploring and developing solutions for the next generation of data- and AI-driven products and process solutions – both at K?rber and with our customers.

My learnings for K?rber are clear:

1. Data is the new oil and the business fuel of the 21st century.
2. GenAI is the catalyst that turns data into actionable insights, creating a competitive advantage to help us move forward and create value for our customers.
3. Place data at the core of your strategy for future success.

What is your opinion on this? How do you see the relevance of data strategies in our AI -driven future?