V3B: Marketing and Social Media Agency
Privacy Risks and Business Negligence
The purchase price of data for business goes beyond the collection, sorting, and storage expenses of maintaining huge caches of information. And while many companies use this data as their crucial business advantage, the prices to customer privacy are somewhat more complicated than many realize. Since I said in Surveillance Capitalism — Can You Know Who’s Tracking You? Cell phone providers, free wifi, Google (and other search engines), and even Social Networks are collecting gigantic amounts of personal data from consumers. Information group is so pervading, as Time Magazine reports, one retailer knew about a girl’s pregnancy and delivered her a promotional flyer before she had even advised her parents.
Business Negligence and Customer Maintenance
In the event the security may be ensured, and privacy risks dealt with, consumers may be more comfortable with the present levels of data collection. The capacities of IoT technology, machine learning, AI, and the cloud rely on a particular number of data collection. But companies have been notoriously unsecure in regards to caring for client security in the digital marketplace.
In situations where companies have policies in place to guard the privacy of their clients there is substantial threat from their sellers and service providers. As Bobby Boughton of OnRamp reports in Data Risk at the Third-Party Ecosystem, over 50 percent of companies aren’t sure with access to their data or how they are using it. And they also aren’t sure what safeguards are in place to mitigate a security incident. Without serious benefits for all this data collection and security threat consumers are questioning the data collection policies of companies they do business with.
A Negligible Edge
As Walter Frick clarifies in Can Tech Companies Really Need All That User Data? Research reveals little benefit for companies when storing gigantic amounts of customer data. Compared against a three-month backlog of personal data, search engines observed little difference in the degree of personalized outcomes. Further the perceived competitive business benefit of giant digital firms storing data is insignificant. And since the research points out, “historical data might be less beneficial in search results than fresher data.”
This is fantastic news for new market entrants who wish to leverage the digital marketplace and make the best use of AI. In addition, it is very good news for consumers with privacy issues. From a business, price, and customer service standpoint it will create less and less sense to store massive amounts of personal information from consumers in the near term and moving forward.
The mix of negligible benefits to customer service from massive data collection, along with the dissatisfaction of consumers with data security, is defined to modify the marketplace. Since 91 percent of consumers report they have lost control of personal information is collected and stored by companies, and the digital marketplace shifts more and more to a customer focus, firms who cater to the desires of their customers ‘ set to increase market share and build their brand.
Past the change in data collection policies there is an chance for organizations to deploy new digital architectures and engineering tools to protect privacy. Utilizing Edge Computing to process algorithms onsite on IoT devices and sensors before transmitting to the cloud is one way technology may change the privacy control of personal data back to consumers. In addition, the rise of blockchain technology as the underlying basis for incorporating digital technology may also help keep data secure.
Businesses who invest at the service of providing security and privacy to their customers–in conjunction with the capacities of digital transformation technologies–are set to be the new business leaders. Adjusting the number of data collected while deploying encrypting abilities and higher levels of personal privacy control will cut expenses, grow market share, and generate customer satisfaction, without affecting the performance capacity of incorporating the cloud, including AI, and also the IoT.
Photo Credit: mmanuals Flickr via Compfight cc
This article was first printed on Futurum Research.