With changing regulatory requirements and increasing costs associated with it, proactively managing compliance requirements remains a challenge for many organizations. This is especially so as the requirements continue to evolve and become more complex.
The good news is that in today’s increasingly digital world, technology offers a compelling value proposition and hence plays a significant role in compliance. Consequently, when combined with relevant know-how around technology, forward-thinking organizations can extract increased value from their compliance programs.
Industry pundits conclude that implementing an effective compliance program effectively makes good business sense. McKinsey experts indicate tighter compliance regulations have challenged institutions in many ways, yet those who adapt best enjoy a distinct competitive advantage. Suffice it to say, that when done right, compliance projects hold the potential to deliver significant ROI, either in the form of customer trust and brand loyalty, improved operational processes or experience a positive impact to the bottom-line.
Let’s see how:
Consider the General Data Protection Regulation from the EU—also known as the GDPR—and how it can effectively deliver value to the entire organization. The overall objectives at the core remain protecting customer privacy, strengthening customer trust and supporting the expansion of sustainable digital services – all essential to business ethics—more so as organizations expand their digital reach and offerings. A recent Forbes article cites that compliance with GDPR should be perceived as a long-term journey or process, vs. a single one-off remediation exercise. So beyond avoiding regulatory penalties associated with non-compliance, with GDPR firms have a unique opportunity to improve their trustworthiness among consumers and differentiate their position on a topic of increasing importance to the end-consumers.
Why privacy? Meaning of privacy in a data-driven world
Data protection has always been important, and with GDPR it has become more urgent. With GDPR now in full effect, Data Privacy—also known as “Data Protection”— is now recognized as a fundamental human right, and not just in the EU but globally. Regulators and law enforcement officials are now enforcing data privacy requirements more than ever. Consequently, organizations must quickly establish trust across the entire ecosystem and demonstrate that they are managing personal information proactively. McKinsey studies predict that only those organizations that build and establish trust with personal data are most likely to win and succeed in the long run.
Data is the new oil of the business engine
Data is any organization’s most valued asset, but only when managed effectively. Over the past decade, what’s added to the complexity of data is the digital world along with the tsunami of data it brings to the forefront. Quite logically, then extracting actionable information from all available data has become more complex than ever. Specifically, as the volume, velocity, and variety of data grows, the complexity of handling data increases exponentially and the ability of the enterprise to derive value from it decreases substantially. To remain competitive, companies require both quality and actionable insights. A wide variety of big data analytics projects are being executed to meet this need. However, these initiatives will succeed only if they are supported by a holistic approach to integration and data management. By deploying technology as the catalyst, forward-thinking organizations have harnessed available data to define new business models, achieve operational efficiencies and manage compliance proactively.
The volume of data and apps is increasing exponentially
Today, close to 5 billion consumers interact with data every day—by 2025, that number will be 6 billion, or 75% of the world’s population. IDC study predicts that in 2025, each connected person will have at least one data interaction every 18 seconds. With the billions of IoT devices connected globally, creating over 90ZB of data in 2025.
The Big Data revolution has brought about a transformation of how data is captured, accessed, aggregated, transformed and preserved. Almost every organization is now undergoing digital transformation, connecting physical systems and devices, thereby creating even more data—all at an unprecedented pace. Only those organizations that can successfully harness the data can extract value from this data and in the form of actionable insight, industry analysts confirm.
Unleashing value from data
Many organizations are planning to update their data integration technologies in large part to meet the demands of a growing number of data volumes and sources. In a 2014 study, it was revealed that enterprises each ran an average of 508 applications. That number has undoubtedly increased over the last few years as businesses have become more aware of tools that add value. Add to that the one-off apps that emerged for various executive fire-drills, which have now become indispensable apps. But, for the most part, applications are not designed to communicate independently with one another – never mind at an aggregate level. Suffice to say then, that to better support digital initiatives, integration strategies today require multiple components, from cloud-based integration platforms, B2B integrations, APIs, and much more. Furthermore, to extract actionable information demands know-how in the form of managed services.
Enterprises are upgrading their data integration technologies
The most recent Forrester study indicates that 80% of enterprises are currently upgrading or planning to upgrade their data integration technologies, and over half expressed interest in upgrading to a managed services approach. What’s even further good news is that new pricing models and cloud solutions have facilitated the rapid growth of these technologies. Crucially, iPaaS solutions can be deployed much faster than legacy EAI and SOA middleware, and this is helping to support the pace of development cycles, governance, and foster digital transformation.
Read the report to learn how technology can deliver for you.