Data Privacy Day: How Indian firms can prepare in this privacy age
As January 28 is celebrated as Data Privacy Day, it is an opportunity to acknowledge and understand the importance of data privacy and digital trust between all stakeholders.
- Jan 28, 2022,
- Updated Jan 28, 2022 7:08 PM IST
By 2025, it’s estimated that 463 exabytes of data will be created each day globally, as per the World Economic Forum. This poses a huge challenge of data privacy for both organisations and individuals.
Prof Pankaj Setia, Chairperson for the Centre for Digital Transformation at IIM Ahmedabad explains, “The rapid pace of digitisation, especially during the pandemic, has made Indian consumers see the benefits of going online. However, the challenges related to privacy are increasing. Individual awareness, such as about the right to be forgotten and to erasure, has made privacy concerns significant for organisations. Further, regulatory bodies are creating policies or guidelines to identify and explain concepts (such as sensitive data) and laying down procedures, making it important for organisations to harness digital technologies while creating a framework for managing privacy. For continued customer loyalty, organisations have to focus on two things: enhancing privacy orientation across different levels of their operations and creating effective privacy responses to manage current and potential concerns. A well-thought-out orientation and response strategy may help organisations systemically develop a framework for managing privacy concerns while leveraging the potential of digital technologies.”
As January 28 is celebrated as Data Privacy Day, it is an opportunity to acknowledge and understand the importance of data privacy and digital trust between all stakeholders. Professor of Marketing - Anuj Kapoor, who teaches a course on Privacy at IIM Ahmedabad, told Business Today, “Though the European Union has been at the forefront of privacy protection of its citizens, with Internet penetration and digital transformation of Indian businesses, data protection and citizens' privacy discussion is going to be the talk of the town.” He further highlighted a few points that Indian firms can follow to prepare themselves in this privacy age:
Pre-emptive action: Before a formal law is in place (Data Protection Bill, 2021 is still not law), firms can start incorporating privacy by design i.e. proactively embedding privacy into the design and operation of IT systems and business practices.
Leverage privacy preserving algorithms: Companies like Apple and Google leverage privacy-preserving algorithms such as differential privacy. It's time for the small players to embrace these open-source technologies as well.
Inform your consumers: Make sure that your consumers feel respected and are aware of any privacy policy change as well as how their data is utilised.
Understand the ‘when’ of the privacy: The firm should understand when to update their privacy policy and especially, when to convey to the users - a user who understands the utility of your product is more likely to appreciate your privacy protection measures than a user who has been with your service or product for long.
Experimentation is the key: Google has been tinkering with the idea of FLOC as an alternative to their cookies and they recently even chucked FLOC and replaced it with Topics API. This quest for Google to protect users' privacy has gone through a lot of ups and downs and experimentation. Hence, smaller firms have no other alternative but to experiment with various privacy preserving methods before zeroing in on one.
Empathy: Empathise with your consumers, i.e. respect your user's privacy and protect their data as you want yours to be protected.
Also Read: Govt appoints Dr V Anantha Nageswaran as Chief Economic Advisor
Also Read: Moglix’s valuation zooms to $2.6 billion with $250 million funds raise
By 2025, it’s estimated that 463 exabytes of data will be created each day globally, as per the World Economic Forum. This poses a huge challenge of data privacy for both organisations and individuals.
Prof Pankaj Setia, Chairperson for the Centre for Digital Transformation at IIM Ahmedabad explains, “The rapid pace of digitisation, especially during the pandemic, has made Indian consumers see the benefits of going online. However, the challenges related to privacy are increasing. Individual awareness, such as about the right to be forgotten and to erasure, has made privacy concerns significant for organisations. Further, regulatory bodies are creating policies or guidelines to identify and explain concepts (such as sensitive data) and laying down procedures, making it important for organisations to harness digital technologies while creating a framework for managing privacy. For continued customer loyalty, organisations have to focus on two things: enhancing privacy orientation across different levels of their operations and creating effective privacy responses to manage current and potential concerns. A well-thought-out orientation and response strategy may help organisations systemically develop a framework for managing privacy concerns while leveraging the potential of digital technologies.”
As January 28 is celebrated as Data Privacy Day, it is an opportunity to acknowledge and understand the importance of data privacy and digital trust between all stakeholders. Professor of Marketing - Anuj Kapoor, who teaches a course on Privacy at IIM Ahmedabad, told Business Today, “Though the European Union has been at the forefront of privacy protection of its citizens, with Internet penetration and digital transformation of Indian businesses, data protection and citizens' privacy discussion is going to be the talk of the town.” He further highlighted a few points that Indian firms can follow to prepare themselves in this privacy age:
Pre-emptive action: Before a formal law is in place (Data Protection Bill, 2021 is still not law), firms can start incorporating privacy by design i.e. proactively embedding privacy into the design and operation of IT systems and business practices.
Leverage privacy preserving algorithms: Companies like Apple and Google leverage privacy-preserving algorithms such as differential privacy. It's time for the small players to embrace these open-source technologies as well.
Inform your consumers: Make sure that your consumers feel respected and are aware of any privacy policy change as well as how their data is utilised.
Understand the ‘when’ of the privacy: The firm should understand when to update their privacy policy and especially, when to convey to the users - a user who understands the utility of your product is more likely to appreciate your privacy protection measures than a user who has been with your service or product for long.
Experimentation is the key: Google has been tinkering with the idea of FLOC as an alternative to their cookies and they recently even chucked FLOC and replaced it with Topics API. This quest for Google to protect users' privacy has gone through a lot of ups and downs and experimentation. Hence, smaller firms have no other alternative but to experiment with various privacy preserving methods before zeroing in on one.
Empathy: Empathise with your consumers, i.e. respect your user's privacy and protect their data as you want yours to be protected.
Also Read: Govt appoints Dr V Anantha Nageswaran as Chief Economic Advisor
Also Read: Moglix’s valuation zooms to $2.6 billion with $250 million funds raise