If one day a business (non-information management) student says ‘data’ while dreaming, I won’t be surprised. We know data is the future and it has been for almost a decade now. Some of the predictions of data technology in the future are prescriptive analytics, real time data insights, cognitive technology, autonomous agents – things, machine learning, data as service models and more (Marr, 2016). A requirement for all these trends is myriad of data and as we know that entails the issue of data privacy. As consumers increasingly adopt technology, the data they generate create both opportunity to improve their customer engagement and a responsibility to keep the data safe.
To find out what consumers think about the privacy and collection of data, McKinsey conducted a survey of 1,000 North American consumers. To determine their views on data collection, hacks and breaches, regulations, communications, and particular industries, they asked them pointed questions about their trust in the businesses they patronize (Anant, et al., 2020). In this blog we will see what consumers responded and how the companies can deal with it according to the McKinsey (2020) article.
The responses reveal that consumers are becoming increasingly intentional about what types of data they share—and with whom. They are far more likely to share personal data that are a necessary part of their interactions with organizations. By industry, consumers are most comfortable sharing data with providers in healthcare and financial services since they are more likely to share data when the data is necessary for their interaction with the company. However none of the 16 analysed industry reached a trust rating of 50 percent for data protection. The lowest rating was 10% for consumer packaged goods, agriculture, media – entertainment and oil – gas. One in ten internet users around the world (and three in ten US users) deploy ad-blocking software that can prevent companies from tracking online activity. The great majority of respondents—87 percent—said they would not do business with a company if they had concerns about its security practices. Seventy-one percent said they would stop doing business with a company if it gave away sensitive data without permission.
Privacy regulations are evolving, with a marked shift toward protecting consumers, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in that US state. Companies are investing hefty sums to ensure that they are compliant with these new regulations. In total, Fortune Global 500 companies had spent $7.8 billion by 2018 preparing for GDPR, according to an estimate by the International Association of Privacy Professionals. A central challenge—particularly for companies that operate internationally—is the patchwork nature of regulation. To address regulatory diversity and anticipate future regulations, many companies have begun systematizing their approach to compliance. Some have begun creating regulatory roles and responsibilities within their organizations.
The revealed that consumers simply do not trust companies to handle their data and protect their privacy. Companies can differentiate themselves by taking deliberate, positive measures in this domain and consumers are expected to respond to companies that treat data as carefully as they themselves do.
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References :
Marr, B., 2016. 17 Predictions About The Future Of Big Data Everyone Should Read. [Online]
Available at: https://www.forbes.com/sites/bernardmarr/2016/03/15/17-predictions-about-the-future-of-big-data-everyone-should-read/#15c951bb1a32
[Accessed 28 09 2020].
Anant, V., Donchak, L., Kaplan, J. & Soller, H., 2020. The consumer-data opportunity and the privacy imperative. McKinsey & Company.
