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The Interview
Collaboration
How ‘radical collaboration’ can unlock trapped value in industrial data
Breaking down data silos and fostering trust across companies could unlock major gains in industrial efficiency. Caspar Herzberg calls this “radical collaboration.”...
Caspar Herzberg, the CEO of Aveva, explains to Michael Wade why breaking down data silos between companies, not just within them, could transform industrial efficiency. But rivals must first learn to trust each other.
Could an ecosystem-led approach to disparate industrial information technology systems build more resilient and efficient global supply chains? Caspar Herzberg, CEO of industrial software company Aveva, argues that breaking down data silos across companies and sectors could benefit all stakeholders through what he calls “radical collaboration.”
“The average factory has hundreds of systems, and hundreds of software applications – and that’s within just one company,” he said. “If you multiply that over supply chains, there are thousands of systems and thousands of different datasets that have enormous value locked in them but don’t speak to each other and aren’t brought together.”
If shared and analyzed, insights from this proliferation of walled IT systems and software in industrial processes in sectors as diverse as energy, pharmaceuticals, and transportation could help companies become more sustainable, increase machine lifecycles, and improve efficiency and productivity. “We can significantly reduce the complexity of supply chains and gain the value of that, but we can only do that if we trust each other more and are willing to collaborate,” said Herzberg.
AI is a tool like any other technology. If you don’t know what you are doing, then do not use that tool.
“That’s what ecosystems do; where even competitors, where it is possible and legal, can come together and share data because this data ultimately unlocks value across their supply chains.”
Central to collaboration is the need to change mindsets, knock down walls, and nurture trust both within companies and across industries. “It is a basic human tenet when you don’t feel safe to build walls around you to keep the wolves out,” he said. “Trust is built over a very long period. People build relationships over a long period, and you have to be patient.”
Herzberg recognizes that achieving this requires Aveva to cooperate more effectively with its competitors and to improve collaboration and openness in-house as well. “It’s only if we interface well with everyone and are truly agnostic that this value can be extracted,” he explained. Aveva sees this agnostic approach – and the need to collaborate with other technology players – not just as an expectation and imperative for its customers, but also as a business opportunity to enable data exchange and apply intelligence across industrial domains.
“Herzberg brings this pragmatism to his approach to leadership in digital transformation. He believes in building diverse teams that offer a range of perspectives and expertise.”
AI should serve humanity, not the other way around
Artificial intelligence is likely to play a significant role in improving the efficiency and value of complex and disjointed data systems in industry. Herzberg cited several possibilities – such as reducing repetitive industrial tasks or training AI agents to improve machine maintenance and decision support – yet he remains cautious about how companies should embrace AI and just how far the tech could go.
“AI is a tool like any other technology,” he said. “If you don’t know what you are doing, then do not use that tool.” Herzberg believes learning how to ask the right questions of large language models, for example, was just as important as interpreting the answers. “There are some limitations to what AI will do in industry, and we have to be clear about them.”
Herzberg brings this pragmatism to his approach to leadership in digital transformation. He believes in building diverse teams that offer a range of perspectives and expertise to fully comprehend challenges before committing to a path ahead. It’s also crucial to know your own limitations as a leader and when to change course.
“You have to balance between understanding that only fools persist in error and, on the other hand, flip-flopping all the time,” he said. “There is a golden middle. When you find that golden middle, you normally succeed. You will make a lot of decisions. Many of them you should make very quickly, while a few you should take your time with. The trick is figuring out which is which.”
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