The Importance of Sovereign Clouds in Data Mining Without Compromising Customer Trust
Martech Outlook | Thursday, December 29, 2022
Data Monetization has nothing to do with selling personal data as they do with improving business performance.
FREMONT, CA:Businesses now struggle to manage client information while converting consumer data into useful insights. Data monetisation carries a bad reputation. Individuals believe that the issue just involves businesses selling their personal information. It's alarming and unsettling that the collection of personal information is growing. But for the overwhelming majority of businesses, data monetisation means something very different: It's about gathering insightful data to save costs, increase worker productivity, and improve current goods and services. This method of data monetization is all about enhancing corporate performance and has nothing to do with selling personal data.
However, almost every business leader is aware that they need to strike a delicate balance between protecting client privacy while also analysing consumer behaviour for competitive advantage. As a result, they have to understand intricate data sovereignty regulations that vary from one nation to the next. According to the U.N., 137 nations presently have laws that specify how data should be handled and kept within their national borders. That excludes economic zones like the European Union that uphold data protection laws across international borders. All of these data rules are rapidly developing and changing all the time.
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Growing Data Economy Impact
On both sides of this challenge, the stakes are very high. According to a recent study commissioned by VMware, 29 per cent of all firms are already using data to boost performance and profitability. In the future, that percentage is anticipated to more than double, with 63 per cent of respondents stating that they anticipate using their data to generate competitive advantage and money within the next five years.
According to the European Commission, the data economy's effect on GDP in Europe alone is expected to rise from 2.6 per cent to 4.2 per cent by 2025. It is hardly unexpected that more corporate executives are focusing on their data as an untapped cash source as the economy becomes more unstable.
The disadvantage is equally significant. Though companies that break data sovereignty laws frequently have to pay substantial fines. Global Data Protection Regulation (GDPR) violations have resulted in fines for more than 900 firms, with the largest amount coming to USD 877 million. When customers learn their data has been exploited and their privacy has been violated, the damage to a brand's reputation may be considerably worse. A staggering 95 per cent of the roughly 6,000 firms polled said that data sovereignty was their top business priority.
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