Data breaches can be catastrophic. It’s vital to understand the value of data privacy controls and the opportunity those controls represent for your company. David Blaszkowsky, Head of Data Governance and Regulatory Affairs at Helios Data, provides insight on the way forward and on how leadership teams can pave the way for security and innovation, all at once.
These days, stories of catastrophic data breaches are all too common. Companies that have been targeted have had to deal with the PR fallout, the brand cleanup, and the reputation management that usually follows such lapses. And then they still spend years rebuilding trust. It’s brutal. Small wonder then that companies that have been breached (and many that have not) are laser-focused on tightening their data privacy controls.Â
Supercharge Innovation and Growth
Smart companies are not just focused on the security of stored data or data being moved around but also on how that first-party data is being used. This frees them up to be creative and innovative with how they use data without worrying about getting into regulatory and legal hot water.Â
Utilities like cell phone providers, internet purveyors and credit card companies have detailed records that show when people move, what locations they frequent and what other services they use. Those utilities and services have a goldmine of information that can be cross-indexed with data records from retail stores to find customers ready to buy a new grill or new furniture or hire new services like house-cleaning and painting.Â
And it could all be done without compromising anyone’s privacy. Phone numbers and emails are off-limits, but cross-indexing other data is fair. By licensing these databases, data marketers can create a complete picture of consumers who meet certain criteria or have specific interests and use the appropriate media and marketing to reach those consumers.Â
A marketer with a database from a credit card company and an internet service provider, for instance, suddenly has a holistic picture of an audience that is ready for painters, decorators, landscapers, retailers and other local services. A partnership with an airline could offer travel services, excursions and restaurants for a destination. And on and on.
You don’t see more companies doing this because they’re too afraid of the downside. The average annual cost of a data security breach is $4.24 million (according to a 2021 report by IBM), and fines and regulations from CCPA and GDPR are real. That means data-sharing agreements are only in place with the most trusted partners, and the data-sharing volume is small.
See More: Golden Copy: The Key to Fortifying Your Backup Strategy
Eliminate the Risk with Technology
Secure data sharing services eliminate the risk of sharing data and increase its value. Forget having to collect data and get consent piecemeal. Information can be collected with one consent agreement and then remarketed. The result is new revenue for an existing database and service. Data never moves, and technology enforces the exact terms of the data-sharing agreement between all parties. It’s a win-win.
Suddenly companies can quickly and safely extract more and more insights useful for a broader range of digital transformation projects that drive profitable growth—without getting into a mountain of legal trouble.
Case in point: Several years ago, the enormous southeastern Asia telecom holding company XL Axiata had mountains of valuable data but only a handful of data sharing projects with one analytics partner. The company now has multiple analytics partners and is seeing profitable growth from this new revenue stream.Â
Radical data privacy isn’t just strategic—it’s a business imperative for fueling natural and sustainable growth. Today, with the right technology in place, it’s easier and safer than ever.Â
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