Shared www.ofboardroom.com/nonprofit-board-roles-and-responsibilities/ business data is a method that makes your company’s information both internal and external available to analysis and collaboration. It’s a powerful approach that can bring real-world benefits to your business. But it’s not without risks and risk.

For many organizations in the world, a lack or resources or time prevents them from leveraging the full potential of their data. However, with the rise of cloud-based technology, these barriers are vanishing, enabling businesses to share their data on scale and unlock new business models. As the world becomes increasingly connected, the ability of companies to share information and insights with ease will help drive more data-driven decisions. In turn, more insights that positively impact the business will lead to further data sharing — creating a continuous positive feedback loop.

Companies that place a high value on data access and insights are more agile and able to profit from opportunities and respond quickly to threats. Additionally more informed decisions based on data enhance the quality of a company’s products and services. General Electric’s GE Digital program, for instance, allows for sharing information with service suppliers about its equipment and machinery to optimize performance and reduce downtime.

Implementing and maintaining a successful data-sharing plan requires consistent policies that are clear, precise tools and a set of procedures that are consistently adhered to. Security concerns are the top challenge, as data must be secured from breach or access by unauthorized persons and in compliance with applicable laws. It’s also important to prioritize data quality assurance and provide documents for data consumers so they can make informed decisions.