“To be as invisible yet indispensable as a power outlet.” This is what the CEO of IDSA envisions when he thinks about the goals of his organization. “Companies from around the world must be able to fully leverage the value of their data by having equal access to secure and sovereign data sharing between trusted partners.”
At present, this is not yet the case. “Large companies have not yet found a way to securely and sovereignly exchange complex datasets,” says Nagel. “This is, of course, very different from sending an email with an Excel file. We are talking about production planning systems and ERP (Enterprise Resource Planning) systems—essentially the heart of a factory’s daily operations.”
From fear of losing control to boundless opportunities
Companies understand the benefits of sharing data but are often hesitant. “There is a fear of losing control over their data,” especially among large established companies, who fear being outpaced by smaller, more agile competitors. For this reason, IDSA is working on an international standard for data sharing. “Our NGO was founded in Germany in 2016, but with 180 members from 30 countries, we now have an international focus.”
Brainport Industries quickly recognized the importance of IDSA. The initiative from Germany immediately attracted international interest, with two prominent Dutch members from the start: the research institute TNO and the High Tech Open Supply Network Brainport Industries. “Since our founding in 2011, we’ve been convinced that data is the nervous system of the high-tech industry,” says Brainport director John Blankendaal. “With IDSA, we have an important partner to make this ecosystem secure and accessible.”
Data sovereignty removes barriers
Manufacturers must be able to decide what happens to their data and determine how, when, and at what price others can use it in the value chain. “This is what we call data sovereignty,” Nagel explains. “To achieve this, data spaces are essential. Data spaces are digital environments where partners who meet our IDSA standards can securely and sovereignly exchange data.”
Nagel compares it to making a phone call. “If I call John, I don’t know if he’s in Eindhoven, Paris, or New York, and I don’t know which provider he uses. Still, I want to be able to call him effortlessly.”
Technology, location, and sector should no longer be barriers, adds Blankendaal. “To continue with Lars’s phone example: as a user, you shouldn’t notice that I’m calling you from my Apple phone while you’re using a Samsung phone, even if we use different network providers. What is taken for granted in the telecom world should also apply to data sharing in industry.”
The data connector: Where data-sharing terms are negotiated
Within a data space, partners in sectors like automotive or machinery manufacturing can securely and easily exchange data regardless of their physical location, Nagel explains. IDSA is working on a layer that functions like an internet protocol. “Currently, this is mostly done through HTML, but truly secure sharing of large datasets requires much more.”
How does it work? With the trusted, independent data connector, IDSA has created the space where companies can share data. “Think of this connector as a process where the terms of the data-sharing contract are negotiated—a kind of certificate. It’s also an emergency brake for companies to stop data sharing if necessary.” Nagel compares it to layers negotiating, “but it happens automatically and within a second.”
Brainport Industries: A pioneer in data spaces
Brainport Industries was already working on its own data space before the term was coined, Blankendaal says. “The need already existed among our member companies. This led to PLM in the supply chain, the precursor to our current data space Smart Connected Supplier Network (SCSN). We were one of the first in the field of data spaces.”
Today, 300 companies share their data within the SCSN network, and 15 service providers are connected. These are IT partners that facilitate the connection to the SCSN network for manufacturing companies. “We continue to grow,” he says. “This means more and more companies can share data more easily and securely.”
The next step is for data spaces to exchange data with each other, explains Blankendaal. “For example, we’re connecting SCSN with Catena-X, the data space of the German automotive industry. We are one of the model projects within Catena-X.” This allows networks from different countries and sectors to securely and easily share vast amounts of highly sensitive data. “This is only possible thanks to the infrastructure and protocols that IDSA has established. They form the backbone of future data sharing.”
SCSN as a best practice for data spaces
Blankendaal and Nagel first met at a networking event in Antwerp in 2017. It clicked right away, the IDSA director recalls. “No one knew the term data spaces at that time. Yet we knew we were facing a massive challenge. We wanted to connect factories with other factories, within their own countries and around the world. How do you achieve such a monumental task?”
When Blankendaal discussed SCSN, Nagel was excited. “It’s not a top-down European project; it was created based on market demand. SCSN is truly an inspiration, a best practice for other initiatives around the world.” Together, they devised a plan to connect the Dutch data space with other countries and sectors. “This is how we are working on interoperability for these systems.”
The collaboration with IDSA has also brought many advantages for Brainport Industries. “High tech is international. In the Brainport region, we are strong in the semiconductor industry, ASML being the most famous example. They work closely with companies like TRUMPF ZEISS, Festo, and Siemens. We need an architecture to collaborate across borders.”
German-Dutch connection as a model for international collaboration
This German-Dutch connection can serve as a model for global cooperation, says Blankendaal. “We are now connecting a Japanese company to our network. This teaches us how to exchange data globally. Our goal is a seamless, borderless data flow. IDSA is creating the architecture that will allow us, as Europeans, to work with China, the United States, and India as well.”
The need for secure data spaces has become evident in recent incidents like the blockage of the Suez Canal, and the COVID pandemic, says the Brainport Industries director. “Supply chains are becoming increasingly unpredictable. Large manufacturers in Europe are driving in the fog, seeing only the taillights of the vehicle ahead.”
A transparent supply chain, achieved through shared data, reduces many risks for companies, explains Blankendaal. “Our world has become more unpredictable. By sharing more data, we can respond more quickly to the unexpected.”
Ultimately, the way we handle data represents a paradigm shift, says Nagel. “It’s a technical, legal, and also semantic challenge. Who gets access to my data, and how do I grant it? Many of these aspects remain unresolved.”
The architecture that IDSA is building for data spaces must answer many of these questions. “This system must be as easy to use as a power outlet. We want to be a commodity that you can simply take off the shelf. Invisible, reliable, accessible, and easy to use.”
Data Spaces Essential for Modern Industry
Blankendaal sees his expectation that data will become the nervous system of the industry increasingly realized. “Our first data system was Purchase to Pay, and it has now evolved into Forecast and Planning.”
The industry has no choice but to make the supply chain transparent. “Companies need to make their carbon footprint visible. For this, the entire value chain must be transparent (Scope 3 reporting).” Data spaces are a good use case for this, he says. “Every product will get a digital product passport. What happened to a specific part? Can it be recycled or refurbished? How do we ensure data is not lost when it crosses national borders? We will be investigating this in the coming years.”
Data spaces will inevitably become a new way for German and Dutch companies to collaborate, Nagel predicts. “As the European industry, we must prevent falling behind global developments. We need to collaborate on innovation, and we can do this through data spaces. Together, we are stronger.”
Blankendaal agrees. “Twenty years ago, Germany and the Netherlands primarily had a trade relationship. Think tomatoes, tulips, and cheese. That relationship has evolved into an innovation partnership where we work together to ensure that Europe remains competitive in the global market.”
This article was originally published in German on Niederlande Nachrichten under the title “Deutschland und Niederlande: Netzwerk für die digitale Produktion.”
