Light at the End of the Tunnel – Are Finnish Companies Realizing the Importance of Data?

Every Finnish company produces data. When utilized and shared effectively, data can create extensive business opportunities – also in international markets. Although Finnish companies have recognized the potential of data, several challenges hinder broader usage. These include e.g. the lack of understanding the value of data, limited resources and ability to productize data as well as the maturity of data culture and risk avoidance. Enhancing networking opportunities and innovation funding could be one solution.

In the spring 2024, the Data Economy program and VTT conducted a second study on data utilization and sharing among Finnish companies. The study aimed to gain a deeper understanding of companies' data personnel, data strategy, data monitoring tools, and the status of internal and external data sharing and its business opportunities.

We received responses from over 80 company representatives across various fields and company sizes. While the data usage appears quite similar across different company sizes, larger companies are relatively more advanced in their development, whereas mid-sized companies lag behind.

Making Progress in Finnish Data Economy

Business monitoring with data has increased compared to last year, with data being utilized more extensively for both tracking and predicting business activities. Additionally, there are relatively fewer companies that do not use any data monitoring tools.

There is also a positive trend in data strategy planning. Compared to last year’s study, the data strategy planning has increased slightly and now stands at almost 30 percent. Furthermore, over a third of the respondents have developed their own data strategy.

Differences in data sharing and utilization have also emerged compared to last year.

Most companies are using external data in their business.

Companies' views on sharing data externally also have partly changed: the percentage of those who do not share has decreased, while the percentage of those planning to share data has increased proportionally. However, the differences between data sharing and utilization are still quite significant. This could be due to the fact that capabilities have not yet been leveraged to develop business models that involve collaborative data sharing and utilization to achieve better results. The upcoming data legislation will change the situation, but it will require a substantial effort from companies to develop their data strategies and capabilities.

The advantages of using data in business are fairly well understood by companies, with more than a quarter of respondents believing they can increase their company's turnover by more than 10 percent. Additionally, most companies have discovered new opportunities to improve their business through data resources. However, the number of data-specialized personnel has remained low this year, which could indicate that many companies are still in the planning stages and do not yet have concrete tools.

Developing in Small Steps – Data Economy Program and VTT support Finnish companies

Comparing the studies from last year and this year, we can observe positive steps in the mindset towards development and the possibilities of data utilization and sharing. However, the results also indicate that many Finnish companies still need support, and a better understanding of the possibilities and risks associated with data.

Utilizing the opportunities of the data economy often requires new roles within the organization. Additionally, the productization of data and information resources requires new knowledge and courage. Smaller companies typically have more limited financial resources compared to larger ones. Conversely, large companies may not be as flexible in adapting to changes as smaller companies, which can react more quickly. Furthermore, the challenges of sharing confidential data are particularly relevant in certain sectors.

The Data Economy program continues to create networking possibilities and enhance knowledge of the data economy for companies of various sizes and at different stages of development.

The program monitors this progress, for example, through surveys and funded projects. It also supports companies' journeys towards international growth as part of Business Finland's Digital Native Finland mission. The mission aims to provide Finnish companies with new business opportunities in response to global changes and significant challenges.

Read more about the Data Economy program

Further details

Kari Klossner
Data Economy program Director
Business Finland
kari.klossner (at) businessfinland.fi

Riina Luoma
RTL, Data Intensive Economy
VTT
riina.luoma (at) vtt.fi

VTT has extensive international networks and diverse experience in digitalization, data utilization, and data business in various industries. VTT's experts help companies with data sharing, business models, data productization and data markets, among other things.

Read also the results of the 2023 study: Data economy benefits not yet fully understood in companies