logo
  • Site Skins
    • About
    • People
    • Journal
    • Contact
logo
  • Site Skins
    • About
    • People
    • Journal
    • Contact
Share
Date 1. June 2018
Author SavvyCompany
Categories Article

How the GDPR will affect your company

The EU General Data Protection Regulation (GDPR), which becomes enforceable on 28 May 2018, is giving many companies sleepless nights. This is not surprising, since the GDPR creates a lot of compliance issues as well as strategic implications for firms operating in many industries.

The situation is even more critical because the regulator has taken a strict stance and non-compliance with the GDPR can result in penalties of up to 4% of global turnover – or 20 million euros, whichever is greater.

The first major change is that companies processing data can be sure that they will have less information available. Data consent conditions have been strengthened and many customers will become more careful when deciding what to share. Especially since the GDPR will require data controllers and processors to explicitly state the purpose of gathering each piece of data.

Due to these changes, businesses will have to emphasise their reliability in communication with clients. The importance of reputation will increase – also for companies which are not selling directly to the end consumer, since big data owners will also choose data processers based on their privacy track record.

Another consequence of this regulation might be the need for a new kind of customer segmentation based on their approach to privacy-related solutions. Many customers will be ready to resign from some part of the service in order to share smaller amounts of personal data. On the other hand, some of them will still be willing to give more consent and receive more sophisticated service in return. As a result, different campaigns and channels should be applied. Moreover, data processers will have to react to this part of the regulation by dividing their complex solutions into smaller ones. Therefore, they could use portions of data separately which they are currently only able to use jointly.

Under the GDPR, customers will also be given much more rights when it comes to accessing the data concerning them. At any time, they will be able to demand a detailed report on how their data is being used and for what purpose. This means companies will need to modify the existing data export tools so that they produce readouts in a legible format and, in general, make their systems more user-friendly. Receiving more customer requests might also require changes in firms’ organisational structure. Firms will have to be prepared for more customer interaction and should plan such impacts in advance.

There are also important changes related to safety measures. Data breaches will have to be reported within 72 hours and, to limit their impact, customer data will have to be pseudonymised. These measures are necessary so that personal data cannot be attributed to a specific subject without the use of additional information which is kept separately. Therefore, additional financial and organisational resources will have to be put up to ensure that data systems are secure enough.

Companies should be prepared for the regulations of the new EU directive with holistic strategic responses. In this context, it will be paramount for companies to focus even more on clients’ needs, offer them specific solutions for the upcoming issues and align the organisation accordingly.

Back
Prev Post
Market research - shrink costs, maximise results!
Next Post
Market segmentation in B2B

Related

Article
Let´s get emotional, baby!
Article
Data Science 2.0 – From Big Data to Smart Data with Customer Science
Article
Design principles – a question of perspective.
  • About
  • People
  • Journal
  • Contact
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
immer aktiv
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDauerBeschreibung
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SPEICHERN & AKZEPTIEREN
Back
EN
EN DE