Many professionals who heard the acronym GDPR, are either whining because of the lack of the knowledge on GDPR or are preparing to face it and welcome it.
Like the existing Data Protection Act (DPA), GDPR will be taking care of the privacy concerns of data but with its own new rules and regulations. Since the world has become digitized, GDPR has been designed keeping the same into consideration.
What Is GDPR?
Abbreviated as General Data Protection Regulation, GDPR is an act issued by European Government on data protection and privacy concerns for all the individuals within the European Union.
It would be a replacement of the 1995 Data Protection Directive (Directive 95/46/EC). Currently, it’s not in the effect, but very soon it will come into force.
Who Would Be Affected by GDPR?
Although the act has been designed for the organisations within the EU it will be applicable for organisations located outside the EU, as well, if they are dealing with organisations within the EU by any means. For example- Companies outside the EU offering goods or services to, or monitoring the behaviour of, EU data subjects.
When Would GDPR Become Enforceable?
GDPR would be enforceable from 25 May 2018. However, it was adopted on 27 April 2016.
Reasons GDPR Will Result In Good And Effective Business
Before I begin, let me tell you that GDPR to be applicable to your organization doesn’t need your organization to be located physically in the European Union. You are independent to choose the location of your choice.
Whenever something new comes people are often observed to start panicking. However, there’s no need to panic. Similarly, the things went on when GDPR echoed in everybody’s ear. In this piece of content, we will see how GDPR will prove effective for your business.
1. Streamlines the existing regulations
The existing Data Protection Directive has, now, been refined and simplified to be used. While the directive’s main aim was to harmonise the data protection law and the transfer of personal data to “third countries” outside of the Union, the regulation will protect and emancipate all EU citizens’ data privacy, and will completely transform the process organisations follow across the region to approach data privacy.
2. Qualified data, better marketing
Since the GDPR focuses on first-party data that is received directly from the customer, the data you store about your customer is of the highest quality because it came directly from them and with their personal consent.
Obviously, when you get qualified data from a direct path and without any involvement of third-party, the data would be clean, you’ll get better leads and hence better conversions. With better conversions, there would be a better marketing.
People are thinking that it will be an end of email marketing, however, GDPR will optimise your emails to increase conversions.
GDPR will force marketers to design a better, responsive and valuable email marketing strategy to engage more leads and delight customers.
3. New data protection process may reduce risk
GDPR brought a new concept called “pseudonymisation”, for rendering data neither anonymous nor directly identifying. Pseudonymization is the separation of data from direct identifiers so that linkage to an identity is not possible without additional information that is held separately. Hence, it will reduce the risks associated with data processing, while it will also maintain the data utility and create incentives for controllers to pseudonymised the data that they collect.
4. An opportunity to trim the fat
A study done by Veritas explains that 85% of all data stored by companies is considered unnecessary, antiquated, or insignificant and the cost and time for managing the data and the server space are also high.
Since GDPR requires a review of data handling and processing procedures; this presents a great opportunity to review and map your data flows and restructure them not only for compliance but also for business efficiency around costs.
5. Companies can take control of their own compliance
What could be even better? Companies can take control of their own compliance which means that they should actively organise, monitor, and understand all the data they store and must ensure that it is compliant with GDPR regulations. Earlier, removing a contact, who had opted off your list while keeping their data on file, was applicable while this no longer exists. Also, a better documentation of records of consent needs to be maintained by the organisation to provide a customer for what they actually signed up.
GDPR isn’t something troubling. It’s just a reminder to the organisations that the information they have about individuals is not just owned but is on loan and so should be looked after with a responsibility. With a right strategy, one can improve one’s business process and one’s organisation can become GDPR compliant.
Confidentiality isn’t the only thing that matters but integrity, accuracy, and availability are the things that do matter.