The Great Treasure Hunt

Volkswagen raises the data treasure trove

Ten automotive brands, nine million vehicles annually – and every single one of them constantly generates data with hundreds of sensors. Windshield wipers, air conditioning, tire pressure, speed – what’s it all good for? “Those in the know are in the know,” says Sven Lorenz, Head of Group Data & AI at the Volkswagen Group, meaning that such data is initially only available to a very small group of users. It is generated for a specific purpose and is available in the form that can be used for that purpose. “If we take the data out of its original context, it can add value in very different places,” says Lorenz.

This makes potential new applications possible, such as identifying a hazard on the road through the adapted driving style of many vehicles. Or detecting quality defects in installed parts very quickly before they are even installed in other new vehicles. There are many possibilities. Individual companies – including those in the Volkswagen Group – have come a long way in this respect. Volkswagen Group Board Member for IT, Hauke Stars, wants to increase speed overall: “We all share the understanding that digitalization is a key success factor in becoming even faster, better, more efficient.”

From shop window to data shopping

The crux: If the data is to be used for other purposes, it must first be processed and cataloged. Sven Lorenz’s vision: “The use of data in the Group should be as simple as online shopping.” The data simply has to be put in the shop window, so to speak. Someone with an idea can then take a look and see what data is available that might be useful. If they find something they like they can place an order. Checks are then carried out to determine whether the data is permitted and viable for the intended purpose – either by the data owner or in some cases automatically. Ideally, the delivery of the desired data follows shortly thereafter. “We call that the data shopping process,” says Lorenz.

The groundwork for this approach has now been laid at Volkswagen. The computer scientist Lorenz cites the quantity, quality and accessibility of data as success factors. If these requirements are met, analytics and artificial intelligence can be put to good use. “Together with Porsche Consulting, we have made great progress here,” says Lorenz. However, the most important prerequisite for his strategy is not technology and a governance structure, but rewiring the mindset of employees – supported by management.

When it comes to handling data, Lorenz distinguishes between two groups within the company: The users and the owners. The first group has an interest in data that arises elsewhere in the company. They have to be trained in the responsible use of data. The owners, in turn, are those who sit at the respective data source. They must be willing to share their data with others – in two senses: Technically and in terms of their personal attitude. When it comes to data, “more is more” does not necessarily apply. But by using the right data in the right places, Lorenz believes, the bottom line is that more value is created.

More value through shared data

Development, production, quality, after sales – many areas of the company rely on vehicle data from daily usage as well as data from the various departments of the company to improve products and processes. But it’s not just the internal departments that benefit from the shared data. This is where Patricia Stich, CEO of VW Group Info Services (GIS) AG, comes into play. The Volkswagen subsidiary, which was founded in 2019, acts as a central interface through which external companies such as insurers, fleet operators or workshops, as well as software companies active in these industries, can also receive data. “We enable our partners to effectively use the vehicle data from the Volkswagen Group in order to develop effective digital services and relevant business models,” says Stich.

Thousands of times every day, data is requested from VW GIS AG for countless VW, Audi, Škoda, Seat and Cupra brand models, as well as increasingly from internal company processes. “Through cross-company connections, we make data the core of the value creation process of the digital services around our vehicles. By providing services from a single source, we leverage harmonized contracts, standardized technology and holistic responsibility from the idea to implementation and customer service to enable effective cooperation in which diverse digital solutions are created in a step-by-step process,” explains Stich.

This is the task of Stich’s specialized team, which works in a flexible and agile manner, often at different times and in different locations – a typical start-up approach, but within one of the largest companies in the world. “VW GIS AG has developed rapidly since its founding and plays an important role for Volkswagen. In the process, we draw on a strong network within the Group and Porsche Consulting has supported us as a strategic partner since our founding,” says Stich. The driving force: “Data forms the basis for the digitalization of the automotive ecosystem and is thus the springboard to the digital future. In this way, we are actively shaping the future of mobility.”

Creating business value from data

The magic formula in this context is to generate business value from the data. “A good example of our data-based digital services is optimized fleet management for commercial customers. Through close cooperation with various specialized software companies, we lay the foundation for the systematic analysis of vehicle data. In this way, we help our customers to reduce their operating costs, as well as to increase driver safety and the sustainability of their fleets. This, in turn, immediately increases the added value of the vehicles while at the same time enabling the owner to choose a digital solution that meets their requirements,” explains Stich. For example, rental car fleets can be monitored for maintenance requirements or indicator lights without the complex retrofitting of so-called dongles. “By optimizing our supply chains as part of our involvement in the CATENA-X network, we also generate significant economic benefits together with the Group, which benefit both our company and our customers,” says Stich.

Listening to Stich, one might conclude that there is no more fascinating topic in the world than data. “I love and live data – professionally and privately.” Just as Patricia Stich receives information about her personal performance from her smartwatch, insights into the current state of each individual vehicle can also be gained at the touch of a button. For example, workshops can use the “Vehicle Identity” product to retrieve information about the vehicle in front of them in order to gain targeted access to the right parts and work steps.

Win-win situation by law

All of this requires everyone involved to adopt a new mindset. But the availability of data is not only a strategic competitive advantage. It is also mandated by law: From September 2025, the EU Data Act requires companies to provide each customer, upon request, with the data they have generated with the product. Furthermore, data must be forwarded to third parties if the customer allows it – for example, to insurance companies. Although it sounds as if others might be better placed to do business with the data and the manufacturers are mainly stuck with the work, the more likely outcome is a win-win situation. Sven Lorenz sees it this way: “EU law ensures that data is available not only to the data owner while at the same time providing an opening for making commercial use of the data – with a European understanding of data protection.”

And this opening benefits end customers, among others. The entire ecosystem around the vehicle should become much more attractive. For example, it can be expected that easier access to data will lead to a strong growth of highly innovative business ideas around vehicles: From real-time parking space suggestions to demand-based infrastructure planning of components such as charging stations, as well as a wider range of smartphone apps and smarthome applications directly linked to the vehicles. This will make it possible to significantly reduce costs through automation and thereby facilitate lucrative business models. At least when the individual driver gives their consent.

Data protection or data treasure?

Thus, data protection and data treasure are not mutually exclusive, but in fact go hand in hand, as Stich emphasizes: “The requirements of the EU Data Act and the General Data Protection Regulation are important prerequisites for acceptance and trust in the use of data and open up a broader and at the same time secure and transparent use of data. This combination is a strong foundation for us and our partners to tap into the benefits of a dynamic, innovative value chain for the benefit of our drivers, vehicle owners, brands and the group.”

David Blecher, a Partner at Porsche Consulting, has closely supported the introduction of the data strategy and the development of VW GIS AG. “Volkswagen has thus embarked on a new path in how to use data and many industrial firms could learn from them.” He expects rapid development of their data business. “We expect to see ten million requests per day in the foreseeable future. This is only possible with professional and automated structures.” Stich’s team is prepared for growth: “The volume of requests is growing steadily as data analytics and artificial intelligence are increasingly being integrated into our everyday lives. Since the last fiscal year, we have managed to double our transaction volume every quarter.” The products offered by VW GIS AG are also expanding. So far, the products are available in Europe, but further expansions, for example to the US, are in the works.