From data room to collaboration: how SmartLivingNEXT creates standards and trust

Professor Hess, LMU is developing a governance structure for the technology program in SmartLivingNEXT flagship project. This is a set of rules that will apply to the entire SmartLivingNEXT ecosystem. What are the benefits of implementing such a set of rules?

There are three essential points that speak in favor of a governance structure in the SmartLivingNEXT ecosystem:

• The realization of a (binding) framework for successful collaboration, so that participating partners can rely on common goals and agreements. In particular, this promotes the building of trust, which is a central prerequisite for sharing data.

• Enabling interoperability by defining common technical and organizational standards.

• Increased efficiency, as not every project or potential participant in the Smart Living Next ecosystem has to define and negotiate its own framework conditions.

What levels or core elements does the governance structure of SmartLivingNEXT contain?

We focus on four core elements: legal, organizational, operational and technical aspects. For each element, we have different levers to coordinate the various participants in the ecosystem, deploy control functions, incentivize engagement in the ecosystem and build trust. The individual elements are not independent of each other. For example, the Data Governance Act (DGA) as a legal framework helps to establish organizational structures that enable secure data exchange.

How do you see the governance structure of SmartLivingNEXT compared to other data-driven platforms such as Industry 4.0 or Catena-X? Are there any differences?

We see three main aspects here: the diversity of the underlying actors and relationships, the added value for all actors and the pursuit of overarching social goals.

The aim of Catena-X is to optimize value creation processes within the automotive industry. It is primarily concerned with B2B exchange processes within an industry. SmartLivingNEXT, on the other hand, comprises companies from different sectors, including the housing industry, energy, care, healthcare, public utilities and, in the long term, certainly others. Compared to Catena-X, the governance structure must therefore take into account a greater diversity of circumstances and interests. In addition, end users such as the residents of apartments play a key role as data producers. These are B2B2C exchange processes within and between several sectors. This is certainly a special feature compared to other initiatives.

SmartLivingNEXT offers high added value for these different user groups, in our case also for private individuals who rent or own their own home. We have analyzed this as part of a user typology. We do not see this in a comparable way in other data room initiatives, as they usually do not use data that falls under the GDPR.

Finally, another aspect that underlines the uniqueness of SmartLivingNEXT is the pursuit of overarching social objectives. In contrast to other initiatives that focus primarily on economic efficiency or technological innovations, SmartLivingNEXT also integrates social and ecological objectives. This includes, for example, improving the quality of living and supporting sustainable lifestyles.

These specifics illustrate how the governance of SmartLivingNEXT differs from other initiatives. They underline the importance of a carefully designed governance structure that promotes both data-driven innovation and social responsibility.

A central task of governance is the development of standardized onboarding processes for satellite and community projects and their members. This includes defining processes for the regulated entry and exit of participants or the handling of services and data provided by partners. What is the challenge of such a task and how do you go about developing the concept?

The heterogeneous structure described above presents us with challenges. Every project or company involved has its own requirements. Onboarding must therefore be designed in such a way that it is individually adapted for each (potential) partner on the one hand and standardized in such a way that we can scale up later.

To develop the concept, we first entered into an intensive exchange with our satellite projects – which develop the use cases in the ecosystem – in order to record their specific requirements for the onboarding process. Building on this, we analyzed and evaluated the procedures of other initiatives. This information formed the basis for identifying and developing the core elements of our onboarding process. We were also supported by a specialist lawyer in designing the associated legal framework.

This integrative approach ensures that our onboarding process not only meets the needs of all parties involved, but also ensures legal compliance. In this way, we create a robust basis for the seamless integration of new partners and at the same time promote long-term collaboration within the project network.

How does governance at SmartLivingNEXT ensure legally compliant handling of data within the data space, successful access management and the associated transparency for data owners and data providers?

We also have several levers at our disposal for this. On the one hand, we ensure long-term compliance with important laws such as the DGA or the GDPR through a SmartLivingNEXT set of rules. Secondly, the actual data flows between the participants are contractually secured. This means that each data provider can define exactly who is provided with data, when, for how long and to what extent – and what happens if these agreements are violated. Various federators can support these exchanges and, for example, offer additional services that simplify the legal issues.

These measures are designed to create a structured and secure framework for SmartLivingNEXT participants and to ensure the necessary transparency and reliability for the development of business models and offers on the ForeSightNEXT platform.

SmartLivingNEXT aims to create the leading smart living data ecosystem. At the end of the three-year funding phase, all organizations in the living environment should be able to participate. How do you see the chances of continuation against the backdrop of transparent and trustworthy governance of the technology program?

A trustworthy and transparent governance structure is certainly an essential basis. However, it will not be enough for long-term sustainability. It is crucial to work out the added value of SmartLivingNEXT for the stakeholders mentioned above. The greater the perceived added value, the greater the incentive to participate in SmartLivingNEXT. In this respect, it is important to address issues relating to the acceptance of the various user groups and, in particular, the development of data-driven business models during the project phase.

Professor Hess, thank you for the pleasant interview!