5 Vital Considerations for Redefining the Role of Data Privacy Pragmatics

Traditionally, the role of a “Data Privacy Pragmatic” has been to offer organizations a balanced approach to comply with Data Privacy Regulations, weighing the benefits of retaining customers' personal information against the risks of data breaches and non-compliance. Unfortunately, the pragmatists cannot escape the negative perception of fear, enforcement, and restriction surrounding Data Privacy and are often unfairly categorized alongside the Privacy Fundamentalists.

Given this context, there is a pressing need to redefine the role of a Data Privacy Pragmatic. While the conventional emphasis on a balanced approach remains relevant, the focus should shift toward maximizing the value of personal data. The following points outline considerations to challenge the existing status quo and redefine the role of Data Privacy Pragmatics:

1. Lay the foundation

The first and foremost responsibility of a Data Privacy professional is to comprehensively understand all Data Privacy Regulations affecting an organization and to educate stakeholders on the importance of implementing additional security layers for personal data storage. Building these foundational blocks is essential for any subsequent benefits that pragmatists can provide.

2. Leveraging data privacy notices for trust building

Data Privacy Notices serve the purpose of fostering transparency with customers regarding data collection, sharing practices, and security measures. However, organizations often view these notices merely as mandatory components of their Data Privacy Frameworks.

There is a need to reevaluate this approach and explore ways to enhance customer interaction with Data Privacy Notices. Improving transparency and communication through these notices can significantly enhance customer trust, consequently leading to greater data sharing by consumers.

3. Maximize data value — Retain personal information wisely

A foundational principle guiding a pragmatic approach towards Data Privacy should involve recognizing data as a vital organizational asset and promoting the retention of personal data as long as it remains valuable. This begins with an evaluation to determine the value of the collected personal data, which admittedly is a complex effort.

Despite its challenges, this assessment can be facilitated by considering factors such as customer lifetime and business volatility, allowing organizations to weigh the risks and rewards associated with the collection and use of personal data. Furthermore, organizations can devise a Data Retention policy that carefully balances Data Privacy concerns with the intrinsic value of the data.

4. Consumers' rights — A positive perspective

Data privacy notices should also serve as a platform to introduce various consumer rights. However, let's be honest: many consumers are unaware of their rights when they engage with an organization. Understandably, organizations may be hesitant to encourage the exercising of these rights.

On the flipside though, these rights can be viewed as an extension of the customer experience presenting an opportunity for deeper engagement with the brand. At the very least, it fosters curiosity among consumers and provides them with the opportunity to access and potentially correct their data. Moreover, an increase in “Right to be Forgotten” requests can indicate the need to further strengthen trust between organizations and consumers.

5. Beyond quantity — Elevating data as a corporate asset through quality

It is crucial for organizations to establish processes for measuring data quality, particularly focusing on completeness and accuracy. As discussed earlier, as organizations build trust with consumers, they're likely to share more personal data.

However, trust is just one barrier for consumers; they also seek value in return for sharing their data. Here, organizations can innovate and incentivize customers to complete their profiles with loyalty perks or exclusive insights. In addition to profile completeness, organizations must ensure the accuracy of consumer data. Accuracy is a fundamental principle highlighted in GDPR and Fair Information Practice Principles (FIPPs) under the broader Data Quality Principle.

Data privacy regulations grant consumers the rights to correct their data, highlighting the irony that consumers can provide inaccurate data yet have the right to rectify it. Trust needs to be reciprocal; while organizations should build trust with their consumers, they should also trust data provided by top-tier customers.

Incomplete data can limit the effectiveness of machine learning models, but inaccurate data poses greater problems, leading to invalid inferences. While manual verification processes may not be practical for many organizations, they should employ automated techniques to flag inaccurate data. This ensures data integrity and fosters trust between organizations and customers.

Conclusion

The role of a Data Privacy Pragmatic extends far beyond mere education, enforcement, and compliance. By fostering key relationships and partnerships within organizations, pragmatists can significantly boost customer trust and optimize the value of customer data. Moreover, the field of Data Privacy presents organizations with a prime opportunity to reevaluate and implement best practices in Data Retention, data security, and the adoption of technologically advanced techniques like anonymization and tokenization to safeguard valuable data.

Ultimately, Data Privacy initiatives can prompt organizations to discern valuable personal data points from the extraneous noise, enhancing strategic decision-making processes.

About the Author:

Anil Jacob is Data & Analytics Leader at IOLAP. With 18+ years in Data Analytics Implementations, he has experience spanning Retail, Restaurant, Health Insurance, and Telecommunications. Jacob’s unique blend of Data and Analytical skills enables him to solve complex business problems and translate them into data-driven solutions.

He is also a Data Privacy Professional (CIPP-US Certified) and recognizes the importance of Data Privacy in maximizing the value of data.