Digital Sovereignty – recognising criticality and acting strategically

The debate about digital sovereignty has been intensifying for some years now, but recent geopolitical events emphasise the acute need for action.

Our current technology landscape is based on standardisation, centralised architectures, economies of scale and efficiency gains – made possible by globalised supply chains, centrally provided cloud services and, in many cases, outsourced IT services. This model has unleashed enormous innovative power and contributed significantly to economic success. But this is precisely where the dilemma lies today: are the success factors on which we have become increasingly dependent over the past 30 years now becoming a challenge – or even a strategic risk? How much digital sovereignty is necessary?

Ideological discussions should be avoided – ideas of digital sovereignty with a tendency towards isolationism and autarky are not expedient and are more likely to scare people off than achieve sustainable solutions and improvements.

Digital sovereignty is not synonymous with technical autarky – it means informed freedom of choice, transparency about digital dependencies, room for manoeuvre in the choice of technology partners and the ability to continue operating critical systems independently. It is about control and resilience.

Why it is challenging to achieve digital sovereignty

Firstly, there is no one digital sovereignty that is identically developed and requires the same measures and approaches. Secondly, the same scope and the same level of digital sovereignty cannot be applied uniformly to everyone.

Instead, a differentiated approach is required that begins with identifying the individual needs and opportunities of an organisation. Only when the individual requirements are understood can specific and therefore effective measures be derived.

From business process to sovereignty analysis: a systematic approach

A sound procedural model for analysing digital sovereignty starts with business-critical processes or business-critical products and services.

This makes it possible to systematically identify the particularly sensitive or dependent areas as well as the concentration of dependencies – and to derive specific fields of action from this in order to set a targeted technological, organisational or strategic course for greater digital sovereignty.

Four dimensions as an assessment framework for digital sovereignty

The four dimensions of infrastructure, software, data and know-how form the analytical framework for the assessment of digital sovereignty. They enable a structured consideration of technological and organisational dependencies as well as the ability to independently design digital systems. Only by analysing these dimensions in a differentiated manner is it possible to identify the areas in which control exists, where risks lie, and which dependencies are critical. This creates the basis for well-founded decisions - both for securing existing systems and for targeted further development towards more digital self-determination.

Digital sovereignty is not a call for autarky

Digital sovereignty does not mean developing everything yourself or acting completely independently of third parties. Rather, it is about conscious controllability: the ability to recognise, critically evaluate and actively shape technological dependencies. The aim is to secure switching options, enable multi-vendor strategies, build up your own supply capability in selected areas and avoid loss of control. It is about freedom of action in a networked world – not about isolation, but about resilient partnerships at eye level.

Open source, the catalyst for digital sovereignty

Open source acts like a catalyst for digital sovereignty – an accelerator that enables decisive change without having to be at the centre of it. Open source creates transparency, security and trust through open source code, collaboration options and the freedom of use, modification, and distribution. It allows organisations to design their digital infrastructure more independently of individual providers and to further develop it in a self-determined manner instead of simply consuming third-party solutions. Open source not only strengthens technological independence, but also the ability to actively and resiliently shape the digital future and is therefore a central design element of any strategy for digital sovereignty.

PwC: Your partner on the path to digital sovereignty

Companies must now assess what degree of digital sovereignty they want to achieve in which areas – even if this involves investment. Control over one’s own digital infrastructure and data creates long-term strategic advantages – for example through greater independence, higher resilience and more creative freedom. PwC supports organisations in analysing dependencies strategically, holistically and objectively, prioritising critical areas, developing action plans and creating individual strategies for digital sovereignty.