Data Security is one of the biggest challenges in the current digital era. Data-driven strategies stand at the core of achieving success in the 21st century.
Digital data opens the pathway to the emergence of new trends that help migrate socio-economic activities to the digital space, while reducing costs of data collection and maintenance.
With the digitalisation of data, both startups and large enterprises are being able to maintain huge volumes of data easily at a centralised location, preferably the cloud.
Insightful data sets have become a core asset in the global economy helping industries and businesses use the data collected to stay ahead of market competitors.
Both private and public organisations now have the opportunity to obtain in-depth data, but that comes at a cost.
The cost would be the risk of data breaching, data hacking, and data misplacement. These potential risks bring data regulations and security features to the forefront.
Governments are also doing their best to establish a proper regulatory system in response to data security threats.
The whole scenario of data collection and management makes it important for all organisations to thoroughly understand what data is, its types, importance of data privacy, and more.
It is important for entities to understand how data is driving innovation.
What is data, What are its types and What is data privacy?
The term 'data' refers to a representation of information, facts, opinions, concepts, or instructions in a manner suitable for communication, interaction, interpretation, or processing by people or by automated machine.
In terms of presence or absence of identifiable information related to consumers, data can be broadly classified into two types:
Personal data
Non - Personal data
Personal data- It includes data relating to a natural human (generally referred to as data principal) that directly or indirectly identifies that individual.
Such data may incorporate details regarding any characteristic, attribute, trait, or any other feature of the identity of such a natural person . It can be further categorized into-
Sensitive Personal Data: It includes sensitive information, which if misused, can be a problem for an individual. Examples would be passwords; health data; official identifier; financial data; genetic data; biometrics data ; tribe; religious or political beliefs, etc.
General/ordinary personal data: General personal data consist of personal identification details such as name and address, tax-related matters ,customer relationships, etc.
Non-personal data: It basically consists of data that are neither completely related nor identifiable to a natural person, which was initially personal but was later aggregated and made anonymous. Broadly three types of non-personal data are there.
Public non-personal data: owned and monitored by governments, such as vehicle registration data and anonymized land records.
Private non-personal data: owned and monitored by non-government players and obtained from assets or processes that are privately-owned.
Community data: The raw data of a group of people that may also be collected by private players. This may include some data collected by the public electric utilities, municipal corporations, and private players like telecom, ride-hailing companies, and e-commerce.
The Generation of large scale data generally in the form of personal data leads to the urgency of data privacy.
Data Privacy or Information privacy encircle 3 key elements:
Right of a person to be left alone and should have control over their own personal data.
Procedures for proper handling, collecting, processing, and sharing of personal data.
Compliance with data protection laws.
How is personal data driving innovation in the present times?
Advancement of technology in the field of Artificial Intelligence, Machine Learning, Big data analytics, Cloud computing etc. has revolutionized the extent and nature of how information is generated, stored and analyzed in today’s digitized world.
Some major areas where personal data is currently driving innovation are as follows:
•Online advertising/ Targeted ads: By collecting and using huge amounts of customer data, the advertising Industry is now determining which kind of customers are most likely to be influenced by a particular ad and whether the advertisement has actually succeeded.
For example, search engines like Google place ads on SERP based on one’s browsing histories.
•Health Sector: Collection and analysis of huge data sets of (EMRs) or health
records can assist health care providers to make diagnostic predictions and treatment suggestions.
For example, using devices like Fitbit, medical practitioner can help understand Blood Pressure patterns of a patient enabling a more precise intervention.
∆ Also, such records can facilitate research bodies and public health institutions in research and development in healthcare solutions and policy formulation.
•Operational Efficiency: Large-scale collection of consumer data can also increase a firm’s operational efficiency through
∆ Effective and efficient management of the supply chain.
∆ Design and development of recommender systems:
to offer recommendations according to the user's preferences, interest, or observed behavior about any product.
∆Development of customized products as per consumers’ needs and interests.
•Governance-Personal data can be used by state machinery for purposes such as targeted delivery of social welfare benefits, effective planning and implementation of
government schemes, etc.
For example, the idea of Data based policing can enable more efficient utilization of available human resources.
•Other potential innovative outcomes:
Finance and Insurance: Data derive a unique opportunity for most financial services and banking organizations to leverage their customer data to transform their business, realize new revenue opportunities, manage risk, and address customer loyalty.
Transport: An individual’s personal locational data could be used for monitoring traffic and improving driving conditions on the road.
Conclusion:
Technological enhancement should not come at the cost of privacy. Privacy is a fundamental and inalienable right. As long as we create regulation that is predictable, nimble and fair, there is no reason to believe that regulation will impede innovation.
In fact, trust will form the right environment for greater involvement and participation in the digital economy, thus strengthening businesses, Industries and innovators.
Therefore, innovation in Technology and privacy of data can be made compatible by striking a balance between effective data gathering and a respect for consumer choice in matters of privacy.
Stay tuned for more from AchieveX!
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