Data security, privacy laws and how to really maximise the use of big data
Whether B2B or B2C, businesses in many sectors have realised the potential to transform the way they communicate and engage with individual customers thanks to the power of big data and data analytics.
Companies and organisations of all shapes and sizes are collecting and storing a vast range of customer data. This data can be analysed over time to provide valuable insights on buyer behaviour, customer life-cycle, customer preferences and to predict future market trends and associated risks. Big data offers a competitive advantage enabling businesses to tailor their products, services and messaging to respond to evolving customer loyalty and preferences.
As the volume of customer data collected increases, so too does the need to maintain stringent data security and data integrity practices. Privacy laws also need to be considered when storing, analysing, segmenting and utilising customer data to ensure use is in-line with customer consent and applicable legislation.
King & Wood Mallesons are working with clients to unravel the big data challenge. Through this we are helping to improve the customer experience, grow business revenue and increase profitability, while navigating unique data and regulatory requirements. Increasingly, we see M&A activity and the formation of joint ventures being motivated by a desire to obtain access to rich data sets.
The big data areas we advise on, include:
- Strategic advice on big data analytics
- Data acquisition and supply arrangements
- Advice on cross-border data sharing and transfers
- Correct vs incorrect use of customer data in marketing initiatives
- Cyber-resilience, data security, protection and breach management
- Dispute resolution
- Privacy regulatory compliance and email terms & conditions
- Solving regulatory issues including licensing requirements, anti-money laundering and counter-terrorism financing rules and sanctions issues.
Big data or Big Brother
Senior Associate, Nick Valentine discusses the pros and cons of collecting client data. As well as data regulations to be mindful of and how businesses can safeguard against data security threats.
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The benefits for consumers (of sharing their personal data) are advertising and product offers that are more relevant to them. The trade-off is a perceived lack of anonymity online that anyone can access your data and that it can be provided to the government to be used at any time.
I think a legitimate concern is that many agencies who are collecting data do not have perfect privacy and security arrangements in place. Even when they do, there is still human error to account for.
If you are providing sensitive information, including your credit card details, name, address and other personal information, it is important to consider the impact if this information was released.
I think that situation is very difficult to guard against, and when security breaches occur they are highly publicised and that does generate a lot of concern for people.
There are also privacy regulations and privacy laws that are attempting to regulate the collection and use of personal information.
A hot topic at the moment is the offshoring of data. We are seeing a lot of our clients struggling when they are dealing with large vendors such as Amazon Web Services whose standard product offering may involve offshoring data.
If you are looking for a low cost, Cloud solution, but are then telling the large vendors that they are not able to off-shore your data, that is a very challenging concept to take to a negotiation.