“Power to the people,” a political slogan and cultural expression used in a wide range of contexts, is also true for the digital transformation revolution. Customers are more in control of what, how, where, and when their data is used. This is forcing companies to be on their toes about trust, compliance, consent, and data privacy.
In a survey of 600 businesses around the world, on the topic of “Giving customers greater control over their data,” Accenture noted that “81 percent of survey respondents recognize this as important, yet only 55 percent say their businesses are taking action.”
The close eye of regulatory bodies has led to new and stricter laws and requirements for data consent management. The General Data Protection Regulation (GDPR) is one such important regulation that should be at the top of the agenda for many organizations who do business or promote to customers in the EU, irrespective of their geographic location.
The GDPR was designed to synchronize data privacy laws across all of Europe. The goal of this law is to protect the rights of citizens and mandates companies to take extra measures to ensure compliance. GDPR is applicable to all organizations that interact with citizens of the EU. This includes organizations that sell goods or services to people in the EU, organizations who monitor and process data of EU residents and companies with websites that are visited by EU residents.
GDPR truly has a global implication as it includes all trust relationships where one side is in the EU.
In simple terms, GDPR is mostly about behavior rather than technology. It defines the way an organization leverages customer data and enables a trust factor is maintained by implementing the guidelines correctly. GDPR compliance is so important that PwC notes that “77% of C-suite executives from large American multinationals surveyed plan to spend $1 million or more on GDPR.”
While most companies should already be taking steps to ensure data protection, GDPR urges organizations to begin thinking in the line of customer involvement of how their personal data is collected, accessed, and used. Companies must ensure smooth passage in this transition not only for building customer trust but also to stay compliant.
To find out more about the business challenges associated with GDPR, click the link below for more information.