DMEXCO Column: New Opportunities for the Digital Economy

A DMEXCO Column by Dirk Freytag, President of the German Association for the Digital Economy (BVDW)

Dirk Freytag, President of the BVDW, in the DMEXCO Column
Image: © BVDW

If we do it right, 2025 will be a year full of opportunities for the digital economy

Even before the new year began, 2025 was already casting its shadow. In November Donald Trump was elected and the German ‘Ampel’-coalition ended suddenly. On top, there are political instability in many European countries. 2025 will be a crucial phase for the future of the digital economy. Germany is facing major challenges – and equally great opportunities. How do we ensure our competitiveness in a global context, shape the future of working and enable a sustainable transformation? These questions will shape the coming years.

As digital economy, we bear a central responsibility: with a courageous and forward-looking attitude, we can establish Germany as a driver of innovation for Europe and beyond. At BVDW, we see ourselves as shapers of the future, actively promoting innovation-friendly conditions in Europe. At the same time, we are very aware that prerequisites and current developments must not be neglected. What happens after Donald Trump returns to the White House? One thing is clear to me: we will see a different transatlantic competition. Shaping it is the task of Europe and its largest member state, Germany.

Competitiveness in a data-driven economy

That is why we need to position ourselves better in the global competition for innovation. The AI revolution is already well underway, as Draghi also notes in his report. In this third wave of digitalization, data is the fuel – or rather, the capital. Those who not only collect data but also use it efficiently and creatively will transform entire industries.

The digital economy is the driving force here. Digital platforms not only enable new business models, but also drive the entire economy. They create opportunities to make better decisions, optimize processes and make value chains more resilient. Through data-based technologies, the German economy can make the transition from traditional approaches to future-proof solutions.

But we have some homework to do. Outdated structures and excessive regulation block innovative approaches. A systematic reform is needed to establish digital technologies as a growth driver. Embracing a new data culture that promotes data-driven technologies such as AI and automation will unleash innovation and sustainably boost economic growth.

The future of work: between automation and humanity

The third wave of digitalization will also change the way we work. Artificial intelligence and the associated automation are often perceived as a threat, but they offer enormous opportunities. They create space for creativity, innovation and personal development.

That’s where data comes in. Not only will data create new professions, it will also make existing working models more flexible. Hybrid work environments supported by data-driven tools allow employees to achieve a better work-life balance while also increasing productivity. At the same time, the strategic use of automation can help to address demographic change by ensuring that people can work where they are needed.

But this transformation will only succeed if we empower people accordingly. Further training and the development of data literacy are essential. A national program to strengthen data and digital skills would not only create new jobs, but also innovations and business models that originate in the digital economy.

Opportunity-oriented data culture: the key to transformation

All of this requires a fundamental change in our way of thinking. Currently, in Germany, there is often a one-sided focus on data protection. While this is important and right, it should not come at the cost of innovation and data usage. An opportunity-oriented data culture means weighing up potential and risks equally. It is not about neglecting data protection, but rather putting it in a context that enables both security and progress. That is why I am pleased that Prof. Dr. Louisa Specht-Riemenschneider interprets her job as Federal Data Protection Commissioner (BfDI) in the same way that we in the digital economy have long been calling for: open for exchange and solution-oriented, to work together for a promising future for Germany.

So why don’t we go one step further? Data protection officers could become data usage officers. A new understanding of the role could explicitly include consulting and facilitating innovation. This small adjustment could have a big impact – on the supervisory side as well as for companies, which could then develop data-driven business models with support and clarity.

A look ahead: A competitive and sustainable Germany

The coming years offer us the opportunity to establish Germany as a pioneer of a sustainable and innovative digital economy. With a clear focus on data-driven technologies, we not only ensure our competitiveness, we also create the basis for economic resilience.

2025 represents an opportunity to shape Germany’s future. With a strong data culture and innovative technologies, we can overcome the challenges of global competition. The digital economy will play a key role here – as an engine for growth, a catalyst for social transformation and a guarantor of sustainable value creation. Now is the time to get started and to work together on an opportunity-oriented future.