Is the Data Economy the World’s Greatest Operating Environment?

This is the second piece in our Data Economy series. While the first, available here, looked at the data economy as a whole and why it is important, this piece looks more specifically at the environment around the data economy. This includes both the environment needed for it to thrive and the ecosystem of companies and businesses that are being created in order to evolve it. We also explore the role of the Aiven Cluster startup program when it comes to supporting the companies that will be the cornerstone of the data economy in years to come.

The data economy is one in perpetual motion, constantly being driven by new and innovative companies entering the market. It’s a technological equivalent of the chicken and egg scenario.

Do these new, data-oriented companies grow because the environment is right for them to do so or do they, by their very being, create the environment in which others can follow? In truth, it’s probably a bit of both. But what does that environment look like and, perhaps more pertinently, what about it is attracting those companies intent on improving it for those that are to follow?

How to become a tech superpower

We covered precisely what the data economy offers in the first article in this series. Understanding customer behavior, optimizing supply chains and predicting market shifts are just a few ways in which data-driven insights foster innovation. Start-ups and established enterprises alike leverage data to identify untapped opportunities, enhance product and service offerings, and streamline operations. In that regard, who wouldn’t want to be part of it?

Governments are also wise to the possibilities. For instance, last year the UK government announced its ambition to become a global science and technology superpower by 2030. This included a raft of new measures backed with GBP 370 million to “boost investment in innovation, bring the world’s best talent to the UK, and seize the potential of ground-breaking new technologies like AI”.

Only 18 months down the line and the initiative is already having an impact. A recent study commissioned by AWS found that there has been a marked increase in UK companies adopting new technologies like AI. On top of that, it also reported that this acceleration could add GBP 520 billion to the UK economy by 2030, and help the UK to meet its ambition to become a tech superpower as early as 2028.

Beyond the headline figures, this tells us a couple of things. Firstly, that the right environment will breed the right types of company and secondly, that today’s companies are eager to become influential elements of the wider data economy.

If you can’t access it, you can’t use it

Yet you can’t simply buy a ticket to join the data economy. Nor will blindly throwing money at it grant access. To join the data economy, businesses need to first get to grips with their data. A point made clear in a recent conversation we had with Luca Eisenstecken, investor at Atomico, who said:

The best companies, in relation to the data economy, have a few common traits, such as deep curiosity and desire to use cutting edge technologies to gain an advantage over competitors.

The ability to access all forms of data is an integral part of becoming a fully functional member of the data economy, however many organizations lack fully unrestricted access to data. This failure to break down internal data silos, impedes data sharing and collaboration across an organization’s business unit. It was a point reinforced by one of our Aiven Cluster startup program participants, Nilesh Bansal, co-founder and CTO at Workorb, who said:

Data accessibility is hindering the data economy because if you cannot access the data, you cannot use it. Period.

Workorb is founded on the premise of helping companies harness the power of AI to create tools that enhance their productivity and streamline their workflows.

An ecosystem of cooperation

The more data an organization has, the more it can use and the bigger role it plays in the data economy. It’s a self-fulfilling prophecy and one of the reasons why there is a disparity between companies at either and of the data scale. A point explained by Jérémy Barneron, Senior Software Engineer at fintech start-up, Dojo who said, “The larger tech companies have already mastered the data economy and how to make sense of their data in real-time to grow their revenue and deliver value to their customers. We need to start leveling the playing field and find a way to make data accessible to start-ups so they can compete with the larger companies.”

The whole premise of the data economy falls down if the data — and therefore power and influence — is held by a minority of big, influential companies. Organizations must be part of a data economy based on ecosystems of parties cooperating on shared goals whilst not losing sight of their respective bottom lines.

Cluster program

Indeed, the data economy exists precisely because those involved are willing to share, give back and help. And it’s working at both a public and private level.

The European Commission is Europe’s largest deep tech investor and the EIC Accelerator is one of the most competitive public funding schemes in the world. It invests in technology to bring about positive societal, economic, environmental and climate impacts. There are any number of private schemes but perhaps the most well-renowned is Google for start-ups — since graduating from Google’s accelerator programs, 20 alumni have gone on to become unicorns (privately-owned startups with a valuation of over USD 1 billion) — and one is even a decacorn (privately-held firm that exceeds the valuation of USD 10 billion). These startups now employ nearly 120,000 people worldwide.

Andra Nuta, who runs the Aiven Cluster startup program which offers start-ups up to USD 100,000 in credit to use on Aiven’s fully managed services for a year, said, “Think of the business world as an ecosystem. At first glance, it might seem like all these different companies — big corporations, tiny startups — are operating independently. But in reality, they're interconnected. A small startup can actually leverage the resources and expertise of larger companies by partnering with them. This collaboration creates a win-win situation where both the startup and the established company benefit.”

A blueprint for wider society

In many respects, the data economy is a blueprint for wider society with participants working to a greater good while not losing sight of their own goals and objectives. It is also one where new entrants are not only welcomed, but helped to thrive and compete.

Imagine an environment that is well balanced, encourages growth and improvement, gives back to its members and improves life for all involved. This isn’t a Utopian society or a rose-tinted vision of a future we’re yet to realize. It’s the here and now and that’s why the data economy is the greatest operating environment the world has ever seen.