If data is the new oil, will GDPR clog the system?

If you feel like you’ve heard a lot of jargon terms floating around the technology industry recently, then you have most likely heard the latest edition, ‘data is the new oil’. In which case, does this mean that the General Data Protection regulation is the blockage in the pipeline?

 

Data is the new oil

Experts have found ‘data is the new oil’ a simple way to break down the growing power of data in the technology market. The term provides a useful comparison between how oil and data - both capable of powering our everyday lives. In the same way oil fuelled the world in the industrial age, data is now driving digital transformation and Industry 4.0.

 

However, this association also misrepresents data’s true value and abilities. Data, unlike oil isn’t costly to produce and, most crucially, with data growing at a fast rate, it is growing faster than users ability to manage it. Indeed, IDC predicts that by 2025, global data will grow to be ten times that of today.[1]

 

Data is a powerful driving force behind the dominant industry giants such as Google, Facebook and Amazon. It is at the core of each businesses’ decision-making process. These tech giants use it to expand into new markets, enhance their offerings and improve customer experience. By using data to analyse trends and patterns, businesses keep ahead of competitors. In the face of digital transformation, it is clear that without data, these industry leaders wouldn’t be paving the way.

 

The problem with data spills  

As our reliance on data grows, especially with the rising popularity of connected technologies such as the Internet of Things, it brings with it some problems. For example, like oil spills, “data spills” can often be concerning for members of the public. With so much personal data under the control of organisations, the effects of hacking, leaking and data protection as a human right is becoming an increasingly popular topic for discussion.

 

With the rise of data, comes the stripping back of consumers privacy. Many people are uncomfortable at the thought of retailers or banks storing information relating to every little detail of their lives.

 

Making the most of the GDPR opportunity

A recent study[2] found 56% of UK residents polled said they would welcome the right to object to their data being used for marketing and profiling. This is what the European Union’s General Data Protection Regulation (GDPR) sets out to address. But, GDPR could also become a major blockage in the pipeline.

 

Vast volumes of data are gathered via people’s mobiles phones, social media, online purchasing history, browsing preferences etc. All organisations processing any form of personal data from EU residents will be subject to these more stringent obligations under the GDPR. The requirement for all companies and institutions to protect the personal data of EU residents begins on the 25th May 2017, making it harder for companies to share and utilise data. The good news is, the stronger rights now available for the data subjects!

 

Unlike the oil business, there will be a transparency element to data with the introduction of GDPR. This is a great opportunity for businesses to show their customers that they are ready and willing to engage with them regarding their data privacy. Simply, it builds further levels of trust and stronger relationships, whilst giving compliant companies a competitive advantage. To make the most of the GDPR opportunity, companies can do three key things:

1. Put someone in charge: GDPR requires organisations of over 250 employees to appoint a Data Protection Officer. Your DPO can get a jump start on where your data is and what is happening with it.
2. Remember to request consent: Under GDPR, anyone collecting data must offer customers and users the ability to actively decide whether they want their data used.
3. Ensure all data is protected: The security of customers’ data needs to be actively enforced and upgraded over the lifespan of the data; and the destinations of the data must be tracked.

Ultimately, GDPR presents a great opportunity for businesses working with vast amounts of data to put in place better best-practice processes when it comes to personal data. Being more transparent about the ways that companies handle personal data, establishes trust with the public. Businesses dealing with data daily must ensure that they put the rights of their data subjects before any need of the business.