Five billion dollars. This is the apparent size of the latest fines on Facebook because of its violation of data privacy.
While many believe the amount is simply a Slap on the wrist for a giant like FacebookIt is still the largest amount imposed by the Federal Trade Commission on a technology company.
It is clear that Facebook is still reeling from Cambridge Analytica, and then confidence in the company has declined 51%Looking for "Delete Facebook" Reached its highest level in 5 years, Facebook shares fell 20%.
While existing companies such as Facebook are struggling with their data, startups in highly regulated organizations,The third waveIndustries can benefit from using a data strategy one expects: ethics. In addition to regulatory compliance, startups that embrace ethics are looking for the best interests of their clients, cultivating long-term trust – and avoiding $ 1 billion in fines.
To weave ethics into the fabric of their business strategies and technology systems, start-ups must adopt "prudent" data management systems. These systems often combine law and technology, and will become a key weapon in emerging companies that rely on data in the third wave to overcome incumbents in their field.
Current operators and regulators often use a slow, unorganized workflow to comply with data, operated manually by armies of lawyers and technology staff. By contrast, agile data management systems streamline workflow and use advanced privacy tools, allowing poor resource startups to better protect their customers and improve their services.
Using agile data governance, startups can balance protection and improvement. In the end, they gain a strategic advantage by getting more data, increasing loyalty, and the ability to adapt to inevitable data accidents.
Flexible data governance helps startups get more data – and create more value
Through flexible data management, emerging companies can address critical weaknesses: data scarcity. customers Participate More data With startups that make data collection an advantage, not a cumbersome part of the user experience. Rapid data management systems simplify compliance with this data practice.
One of the key principles of its ethical data strategy is to reduce data collection and use. Ally customers get services through a dedicated website, and they rarely fill in long questionnaires. When data is requested, it is done in small doses on the site – and always leads to an immediate value, such as the display of transactions.
An important tool to reduce data usage is the use of advanced data privacy tools such as differential privacy. Favorite organizations such asMail a AppleDifferential privacy limits the access of data analysts to data summaries, such as averages. By injecting noise into those abstracts, differential differentiation creates Certainties of privacy And prevents Scenarios Where malicious parties can Reverse Engineering Sensitive data. But since differential privacy uses summaries, rather than completely hiding data, companies can still derive meaning from them and improve their services.
With tools such as differential privacy, organizations go beyond governance patterns where data analysts get either unrestricted access to sensitive data (Think: Uber's controversial "View God") Or face multiple barriers to data access.Instead, emerging companies can use the differential's privacy Exchange and collect data safely, And help them overcome the scarcity of data. The most flexible data management systems allow startups to use differential privacy without the code and large engineering teams that can not be held by current administrators.
In the end, better data means better predictions – and Customers are happier.
Flexible data governance fosters customer loyalty
According to Deloitte, 80% Consumers are more loyal to companies that believe they protect their data. distance Much less Leaders in existing companies and existing companies – survey respondents themselves – believe this to be true. Customers are more interested in their data than leaders in current companies think.
This knowledge gap is an opportunity for startups.
In addition, big corporate companies – themselves the clients of many startups – say about data compromise risks Prevent them From working with start-ups. And rightly so. On 80% Data incidents actually occur because of internal errors, such as third-party vendors who handle sensitive data by sharing with inappropriate parties. After finished 68% Companies do not have good systems to prevent these types of errors. In fact, Cambridge's analytical storm in Facebook – which resulted in a fine of $ 5 billion – was ignited by improper third-party participation Personal Data With a political consulting firm without user consent.
As a result, many companies – whether emerging or busy – are stuck with a time bomb because of the depletion of customers.
Agile data management These risks are mitigated by simplifying ethical data practices to understand, monitor and monitor data at all times. Using these practices, startups can prevent and correct mis-handling of sensitive data quickly.
Cognoa A good example of starting the health care of the third wave is to adopt these three practices at a rapid pace. First, he understands where all his sensitive health data lies by linking all his databases. Second, Cognoa can control all data sources connected once from a single point using a single access layer and control, rather than relying on data silos. When this happens, employees and third parties can only access and share the sensitive data sources they are supposed to share. Finally, data queries are always monitored, allowing Cognoa to produce audit reports frequently and capture problems before they are out of control.
Using tools that simplify these three practices, even low-resource startups can ensure that sensitive data is controlled accurately at all times to prevent data crashes. With streamlined core workflow functions, the same startups can maintain the speed of data analysis by safely sharing data with the right parties. By sharing data better and more securely across jobs, startups can develop the insight needed to create a long-term loyal audience.
Flexible data governance can help emerging companies escape inevitable data accidents
In 2018, Panera was mistakenly involved 37 million customer records On its website and take it 8 months To answer. The Panera data incident is a taste of what will come: Gartner Predicts it 50% Of business ethics violations will stem from data incidents such as these. In the era of "huge data", is likely to continue billion of incumbents without the graceful management of database data violation.
Given the inevitability of such incidents, emerging companies that adopt agile data management are likely to be the most flexible in the future.
For example, Harvard Business Review notes that corporate stock prices without strong corporate governance practices are declining 150% Most companies adopt strong practices. Despite this difference, only 10% Of the Fortune 500 companies actually use the principle of transparency of the data specified in the report. Practices include explicit disclosure of data practices and enabling users to control their privacy settings.
Certainly, data crashes are becoming more common. But this does not mean that startups do not suffer from them. In fact, up to 60% Of emerging companies fold after the cyber attack.
Self-service tools such as WebMD are part of agile data governance. These tools allow startups to streamline manual processes, such as responding to customer requests to control their data. Instead, startups can focus on delivering value safely to their customers.
For a long time, the public seemed less interested in their statements.
This changed. Senior executives in large companies have publicly Investigation Not to take data management seriously. Some, like Facebook and Apple, claim to drive privately. In the end, the risk of data privacy increases significantly The third wave Industries that can change access errors to key basic needs, such as health care, housing and transportation.
While many job incumbents have legal departments and good resource compliance, sensitive data management goes beyond "risk mitigation" tasks to those tasks. Agility governance means that time-consuming and error-prone business processes are simplified so that businesses serve their customers faster and more securely.
An example: even after getting advice from an army of lawyers, the Zuckerberg testimony consisting of 30,000 words about the Cambridge Senate on analytical analysis included "morality" only Once, And excluded "data management" Completely.
Even if companies have legal departments, most do not demonstrate their commitment to governance. less than 15th% Consumers say they know the companies that protect their data better. Emerging companies can capitalize on this knowledge gap by adopting an agile data management and educating their customers on how to protect themselves in a risky third-wave world.
Some incumbents may be always safe. But workers in the high regulated third wave industries, such as cars, healthcare and communications, should be concerned; customers trust these current jobs the least. Start-ups that adopt agile data governance, however, will be more trusted, and tIt is time to act now.