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By Jason Foster, CEO and Founder, Cynozure

According to the European Commission, the EU and UK data economy could hit 1tn by 2025. For context, thats bigger than Tesla or Facebooks owner, Meta Platforms. Clearly, there is a huge opportunity for companies and governments to capitalise on the ever-increasing amount of data they hold.

As the world rebuilds from the pandemic, we have a unique opportunity to harness the power of data to drive economic growth. Given rising inflation and the Bank of Englands warning that the UK will enter recession later this year, its imperative that data becomes increasingly central to government decision making.

Learning from crisis

The pandemic offers a clear example of the benefits of a data-led response. Without the accurate use of data, the global response to the pandemic would have been far less aligned, slower, and less agile and, most importantly, less effective.

Without meaningful data insights, could governments have accurately tracked infection hotspots in real-time or rapidly introduced measures to protect communities and save lives? I think not, and certainly not to the same speed and accuracy. Of course, data was also crucial for developing and administering the vaccines. Put simply, the effective use of data was central to the global pandemic response, and it will be vital to economic recovery.

The pandemic also had a wider social impact in terms of digital transformation. Suddenly, the entire UK had to move to digital channels to work, shop, and socialise that was the case for individuals, businesses, and government.

Things have changed forever, and society has now fully embraced the digital transformation. Data management is central to this with an increased online footprint, theres an ever-growing volume of data that can be utilised in countless ways to support businesses, boost the economy, and help the UK emerge from the pandemic in the strongest possible position.

Taking lessons from business

Whilst data usage in government decision-making processes has undeniably improved, there is always scope for further positive development.

In business, almost 40% of CEOs plan to invest in data over the next three years, with 70% expecting this investment to have a large impact on their bottom line. Whilst governments may not be profit-driven in the same way as corporates, investing in data boosts efficiency and maximises effectiveness.

The data industry can be hugely valuable to the UK economy more broadly, but the government must act quickly if it is to take full advantage of the rapidly growing market and cement the UKs position as a global leader.

Laying the groundwork for success

What tools or support are therefore needed to help promote the use of data and allow the wider data economy to thrive?

Embracing the power of data in a positive way can be a force for good for government and businesses of all sizes in all sectors. However, it requires a data-literate leader to drive this shift. Many leaders are now recognising that a business strategy isnt complete without a comprehensive data strategy.

This doesnt mean reinventing the wheel policymakers can use proven standards and best practise when defining and delivering strategy, which will help them to get a running start, as well as giving them time to upskill or hire in new talent to manage data programmes when necessary.

There is also the question of trust. Many consumers still perceive the issue of data be that sharing, or how their data is stored by governments and businesses with sceptism. The future leader must face this head on and take measures to reassure consumers that their data is safe and wont be weaponised, as we have seen in the past with election scandals.

In terms of tangible steps to be taken, this may mean establishing clear guidelines about what is allowed and not when it comes to topics like data mining and AI deployment. Ethics are vital, and the full potential of data will only be realised when the public trust how their data is being used.

Steps in the right direction but is it enough?

Government initiatives are key the Department for Digital, Culture, Media and Sport recently launched a competition with a 12m Digital Growth Grant to deliver a new digital and tech sector support programme aimed at scaling tech companies. Similar programmes are needed to support the data revolution.

The Data Protection and Digital Information Bill is a welcome step that aims to remove some regulatory barriers and support data-focused innovation. However, whether the bill goes far enough remains to be seen.

There is also the issue of how aligned the UK will be with the EU once legislation is enforced. Many are concerned that the reforms will diverge too far from the EUs GDPR standards and actually increase the regulatory burden placed upon the data economy, ultimately curtailing growth. This is a hugely important issue that government needs to resolve quickly.

As with any innovation, collaboration is vital. Again, we can learn lessons from the pandemic with effective data-sharing beyond borders, the global community was able to work together to manage the risks posed by Covid and to minimise the risks of infection. This data-sharing approach is crucial if governments are going to effectively introduce data strategies.

Working in isolation is not an option when it comes to data. It requires collaboration between governments, citizens, businesses, and technology vendors to develop and road test policies, strategies, and plans about how data is captured, stored, and used.

If the UK is to have the best chance of success, its imperative that our new leader is aware of this fact and is willing and open to leading positive change through data.

More:

Why data and technology will be crucial for the UKs new leader - Global Banking And Finance Review