Data has always been an essential part of any business. The new decade promoted a data-driven business model. This ensured a competitive edge for modern companies and organizations. Big data and analytics promised that the new decade was going to boost the performances to exceptional heights.
But have you thought that these incredible data-driven initiatives the world is witnessing can be an issue? That it can lead to data privacy concerns if not managed proactively?
The data privacy regulations are continuously changing and reforming all over the world. We know that a data-driven approach is vital for business success. However, organizations often fail to strike a balance between data privacy and data analytics. In this article, we are going to find out a way to create that balance!
The Data-Driven Approach in Modern Businesses
A data-driven approach can no longer be assumed as a luxury. Instead, it is a strategic stipulation that every modern business requires for potential growth. By using the data-driven approach, companies can strengthen their decision-making process. In addition, they gain access to consequential data that is a necessity for business survival.
For years, collection of the data and analyzing it has been part of the business. Snail mail surveys, customer feedback forms, or telephonic details, etc., are being collected. However, with the influx of the internet, all the data collection tactics have changed for good. Nearly 2.5 quintillion bytes of data are being generated every day. Let’s check out some benefits of leading a business using a data-driven approach.
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Allows Businesses to Make Decisions Based on Data
Data-driven decision making is a process where a business can make an informed decision based on data and insights. Previous data can ensure estimated projections for upcoming projects. Such data can validate the decision and helps in the financial assessment.
How is the data collection for the businesses? Either via survey responses or by targeting a selected group of audience. Next, the collected data is utilized as per the business goals and objectives. Finally, these analyses are consumed as actionable insights to drive growth.
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Ensures Confidence Throughout
As per the conventional approach, business decisions were based on hunches, guts, and past experiences. But there were flaws in such a style of decision making. Firstly, suspicions can prove wrong and cost millions. Secondly, new businesses never have past experiences. In such a stance, the traditional way can expose modern businesses to losses.
Due to these reasons, data-driven decision-making is being embraced by companies. The data can work as a benchmark score that helps in the verification of current efficiency. With up-to-date data, businesses can streamline their existing process. In addition, it leads to a reliable prediction of future outcomes.
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Valuable Cost Savings
A survey conducted by Harvard Business Review confirms that the data-driven approach is fruitful. The executives of Fortune 1000 are affirmative that their business has experienced a decrease in expenses. According to stats, 49% of the companies are satisfied using a data-driven approach.
The Data Privacy Regulations
It is crucial to make business decisions based on evidence extracted from the data. This is due to technological change and a cultural shift that pushes every business to adopt it. An organization operating for more than a decade has an excessive amount of data. They require a data-driven model to utilize it for the better.
Unfortunately, several businesses are incapable of transforming old valuable data into actionable insight. If a business desires to survive in the modern era, they require access to impactful data. They have to come out of the “we have been following this process since ever” phase.
Once the organization is capable of utilizing its data, there come two significant issues. Firstly, concerns with data privacy regulations. Secondly, the enhancement of consumer awareness.
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Data Privacy Agreement
Data breach in terms of identity theft and banking fraud is common. Customers are now aware and don’t trust businesses that don’t keep their personal information safe. Consumers of this decade are also mindful of their legal rights in case of a data privacy breach.
To maintain peace, many data security and privacy guidelines have been draft all over the world. The government is making sure that the enterprises are compliant with the set privacy regulations no matter what. Without a doubt, these privacy concerns have posed operational challenges to businesses. It also ultimately increases the overall cost.
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Customer Privacy Awareness
The customers are always aware of the consequences of a data breach. Hence, they opt for those organizations that are crystal clear about data collection and analytical processes. It is the right of the consumer to know who is going to access their data and how.
Challenging the fidelity of the brand is just a single click away from the customers. Therefore, it is the responsibility of the organizations to be clear about their privacy policies. With these, brands can retain their customers and gain their loyalty.
How to achieve the balance between them both
It is a common belief that data analytics and data privacy are conflicting mechanisms. They both cannot go hand in hand, and compromise over any is the ultimate result. Guess what? There is a way to strike a balance between both.
1. Holistic Approach to Comply with Data Privacy Regulations
A study conducted by CGOC revealed that 57% of businesses urge their employees to get trained for data protection compliance. Unfortunately, only 25% of companies are utilizing that training and completing their audits. These statistics indicate the incoherent approach of the organizations for data privacy compliance.
CGOC further disclosed that 50% of the survey respondents believe that the internal practices in organizations are a threat to data security. A total of 38%, on the other hand, believes that external hackers are actual threats.
To achieve a genuine data privacy model, businesses need to isolate their operations. They ought to collaborate with the security, marketing, legal, and IT departments. By utilizing the correct tools and technologies, secure data analytics is possible. It will be free from all data breach concerns.
2. Ensure Privacy Before Launching Data Analytical Project
You can protect the valuable user’s data from the Data Analytics project. Your business can opt for anonymous data processing. The majority of the Data Analytical projects have a feature to identify the trends and patterns extracted from enormous volumes of data. In this, it is not essential to have the individual’s data stored.
If you are using anonymous data, then your organization can absolve itself from privacy compliance regulations. The requirements won’t apply to you if the data is unspecified and kept secret. Instead, your business will comply with the legal collection of data only.
3. Transparent Data Privacy Policy
Trust over the brand has always been an essential factor for business survival. Customers are always concerned and never go for misleading sites. Therefore, managing the trust of your customers must be the priority no matter what. Organizations must formulate such strategies that can win the trust of their audience. Once the trust is built, your data analytics is also going to improve. It is because the trust rate gets higher that allows the user to share their data honestly. Therefore, with a transparent data privacy policy, you can enjoy enhanced data analytics. It is a win-win situation in every aspect.
Wrap up
The data-driven model is going to nourish your business and help in gaining a competitive edge. With insightful data, your decision-making process can alter the future of your business. However, ignoring the potential data theft cannot be ignored. If the driven data is not collected, shared, and analyzed correctly, it can lead to a crisis.
Do you want to integrate successful data analytics projects that are compliant with the set regulations? You can now drive strategic business decisions through data science with Tkxel. Drop us a line today!
