Data Sovereignty - Call for an International Effort

1. © Fraunhofer · Seite 1© Fraunhofer ISST • Page 1 Prof. Dr.-Ing. Boris Otto Digitising Manufacturing Conference in the G20 · Berlin · March 16th, 2017 DATA SOVEREIGNTY CALL FOR AN INTERNATIONAL EFFORT

2. © Fraunhofer · Seite 2© Fraunhofer ISST • Page 2 AGENDA  Data Sovereignty  Industrial Data Space Initiative  Call for Action

3. © Fraunhofer · Seite 3© Fraunhofer ISST • Page 3 In the »Smart Service Welt« data is a key resource for business model innovation »Smart Service Welt« End-to-End Customer Process Hybrid Service Offerings Data- Centricity Business Ecosystems Digital Platforms New Business Models Logo source: BMWi.

4. © Fraunhofer · Seite 4© Fraunhofer ISST • Page 4 Image sources: ihs-gmbh.de (2016); silicon.de (2016). Legend: ERP – Enterprise Resource Planning; DDS – Digital Decision Support; OEM – Original Equipment Manufacturer. As a consequence of the »Smart Service Welt« demands for transparency and interoperability in value networks are increasing

5. © Fraunhofer · Seite 5© Fraunhofer ISST • Page 5 Source: Otto (2016). Enterprises end up in a conflict of interest – between the demand to share data and the need to protect it Interoperability Data Exchange »Sharing Economy« Data-centric Services Data Ownership Data Privacy and Security Data Value Data sovereignty is the capability of a natural person or corporate entity for exclusive self-determination with regard to its economic data goods

7. © Fraunhofer · Seite 7© Fraunhofer ISST • Page 7 Industry articulated requirements for a networked of trusted data, the Industrial Data Space Trust Certified Participants Scalability Network Effects Openness Neutrality and User Community Governance Mutual Rules of the Game Ecosystem Platforms and Services Security On-Demand Data Exchange Sovereignty Data Ownership Decentral Control Federated Architecture

8. © Fraunhofer · Seite 8© Fraunhofer ISST • Page 8 Source: Cf. Kagermann (2015). The Industrial Data Space defines the data architecture connecting smart services and the internet of things  Connected physical platforms Smart Products Technical infrastructure Smart Spaces  Industrial Data Space Service platforms Smart Services Smart Data Services (Alerting, Monitoring, Data quality etc.) Basic Data Services (Fusion, Mapping, Aggregation etc.)  Use restrictions attached to the data  Secure data supply chain  Data Fusion  Certified software endpoints  Multiple use scenarios  Federated governance models

9. © Fraunhofer · Seite 9© Fraunhofer ISST • Page 9 Data flow Material flow Legend: IDS – Industrial Data Space; LSP – Logistics Service Provider; IoT – Internet of Things. The Industrial Data Space is not another cloud platform, but rather connects various existing platforms and smart devices Public context data Weather Factory/Warehouse LSPElectronic Marketplace Traffic IoT Cloud IDS Broker IDS IDS IDS IDS IDS IDS IDS IDS Supply chain planning data Supply chain event data Internal process data

10. www.industrialdataspace.org // 10 60+ Companies and Organisations 5 Working Groups 18 Use Cases 1 Ecosystem =

11. First working group meetings MEMBERSHIP DEVELOPMENT AND MILESTONES Foundation with 18 Members Connector realised in first sprint Go Live first use case with thyssenkrupp Release of the reference architecture document 2016 2017 52 members end of 2016 58 members today First international member More than 150 members at the end of 2017 Hannovermesse Start of the DIN standardisation process Foundation of first international hub First public assembly on CeBIT – MoU with OPC- Foundation – release whitepaper Strategic Goals and Call for Action ∕ More international members ∕ Strategic alliances in G20 ∕ Establishment of first international Industrial Data Space Hubs

12. © Fraunhofer · Seite 12© Fraunhofer ISST • Page 12 The Industrial Data Space initiative liaises closely with Plattform Industrie 4.0 activities – and also with other national programs Pharma 4.0 Bank 4.0Retail 4.0 …Industrie 4.0 Focus on Manufacturing Industries Smart services Data Transmission, networks … Real-time systems Industrial Data Space Focus on Data Data …

14. © Fraunhofer · Seite 14© Fraunhofer ISST • Page 14  As a strategic resource, data becomes a competitive factor in digital transformation  Consequently, data sovereignty is a key capability for industrial enterprises  An international effort is required as digital transformation is the first industrial revolution to happen all over the globe at the same time  Action is needed in areas such as …  … legal, economic, and technical frameworks  … standardization  … regional requirements and global commonalities  The Industrial Data Space Association is a platform for this endeavor, welcomes international members, and supports the establishment of an international standard for data sovereignty Data sovereignty requires an international effort

15. © Fraunhofer · Seite 15© Fraunhofer ISST • Page 15 Prof. Dr.-Ing. Boris Otto Fraunhofer ISST Industrial Data Space Association Managing Director Member of the Board of Directors Boris.Otto@isst.fraunhofer.de https://de.linkedin.com/pub/boris-otto/1/1b5/570 https://twitter.com/drborisotto https://www.xing.com/profile/Boris_Otto http://www.researchgate.net/profile/Boris_Otto http://de.slideshare.net/borisotto Your Contact Person!

16. © Fraunhofer · Seite 16© Fraunhofer ISST • Page 16 Prof. Dr.-Ing. Boris Otto Digitising Manufacturing Conference in the G20 · Berlin · March 16th, 2017 DATA SOVEREIGNTY CALL FOR AN INTERNATIONAL EFFORT