Big data has led to a number of promising changes for consumers and businesses all over the world. It has led to the growth of nuanced search engines, website personalization features and many other promising benefits. This is one of the reasons that the market for big data is currently worth over $271 billion.
However, there are also some downsides of big data. One of the biggest drawbacks is that is has led to a number of data breaches, which have put a growing number of consumers at risk. Data breaches in the banking sector can cause consumers massive headaches and financial losses. Big data has also led to a number of privacy concerns as well.
This is why a growing number of data regulations are being instituted. Keep reading why these regulations are important in a world governed by big data.
Data Regulations are Crucial for Protecting Consumer and Business Data
Since the beginning of the internet, one phenomenon has remained an evergrowing task—how to deal with all the data circling the net.
In the last decade or so, especially with the online business explosion after 2020, the amount of data going around daily has been enormous.
Every business owner who wants to upgrade his business efficiency must think about data management.
Furthermore, since not every business operates honestly and openly, bringing some regulations into action is beneficial not just for businesses but for every one of us.
In this article, we’ll discover those benefits and closely examine some of the data management regulations.
What are the data management regulations?
But first, let’s see—what are data management regulations?
By definition, data management regulations are the rules and regulations that regulate collecting, processing, keeping, and sharing data within or between one or more organizations.
That means that all the data you collect about your clients or cooperators needs to be managed in compliance with those regulations.
It’s important to say that these regulations can vary from one country or region to another because different countries and regions have different standards regarding data management.
Still, it all comes down to these few most important issues:
- Data privacy
- Data security
- Retention and deletion of data
- Data breach notification
- Cross-border data transfer
These are included in regulations such as the General Data Protection Regulation (GDPR) and the Digital Markets Act (DMA) in the European Union or the Health Insurance Portability and Accountability Act (HIPAA) in the United States.
These are just a few of the most known, but do a thorough check of all the regulations in your region or country before collecting any data.
Benefits of data management regulations for business
Let’s explore a little closer to how the use of these regulations will benefit your business.
Here are the three most important ones:
1. Comply with the law
When you started your business, you immediately had to comply with various laws. It’s the inevitable. Applying data management regulations to your business will make you legit and not in conflict with the law.
Also, these regulations are in the service of protecting your business from misused data and helping you get the right position in the digital world.
One of the newest and boldest sets of regulations that can do the most benefit to your business is the Digital Markets Act (DMA), which was introduced in March 2022 and became active in November 2022.
Here’s a bit more information on that act and what to expect from it:
DMA effect on businesses
As its name states, this act regulates issues and behavior in the digital market.
As businesses are becoming more and more reliant on online platforms and services to reach their customers, the European Union found that a few regulations had to be implemented in that new and not-so-law-driven place.
One of the biggest concerns of the EU regulators was the increasing dominance of some platforms, which created unfair competition.
To eliminate that, they announced six major companies as “gatekeepers” and gave them a deadline to comply with this Digital Markets Act. The deadline is March 6, 2024.
Gatekeeping usually means a positive act, but in this case, it refers to these companies being manipulative, withholding relevant information, and creating unfair competition.
These companies are Microsoft, Meta, Alphabet, ByteDance, Amazon, and Apple.
So now you see that this set of regulations is very much made to protect small businesses and to prevent monopolistic practices.
And that can only be good for you.
Unless you’re the CEO of one of the companies stated above.
DMA will have a huge effect on all small and medium businesses looking to break through on the European market. Hopefully, it’ll work in practice as well as it sounds and create a healthy and fair business environment.
It’s so much easier when you know your success depends directly on you and your management rather than on some mega platform that prioritizes one business over the other.
2. Gaining trust and reputation
Complying with the regulations can benefit your business by avoiding fees and building your position in the business world.
Since every business relies on its final consumers, it’s their opinion and trust that count.
Suppose your consumers feel secure and protected when doing business with you, knowing that their data will not be misused.
In that case, your business will easily gain a good reputation, and that’s half your marketing done.
On the other hand, any negative experience with leaving their data with you will do the opposite.
Your consumers will find other businesses to deal with where they feel more secure.
And they’ll probably leave bad reviews, so you can count on a lower and lower income.
3. Get an advantage over competition
Complying with the law and gaining the trust of consumers are two main factors that can put your business in the right position.
And that is: ahead of the competition.
But to be on top of the game, you can use data management to go a bit further.
By applying these regulations and managing all the data correctly, you can gain valuable insights.
If you analyze that data responsibly, you can gain knowledge of your consumer’s behaviors, needs, and preferences.
This knowledge will give you better insight into what your future actions have to be and take you way ahead of the competition.
Also, what can give you a better advantage over the competition than having the reputation of a secure and trustworthy business?
Benefits of data management regulations for consumers
As we said before, these regulations are beneficial not just for businesses but for all of us. We’re all using various channels to purchase or get products and information, so it’s important to be aware and take caution when leaving our data all over the net.
Here are the three most valued benefits of data management regulations for us, as consumers:
1. More control over personal information
Every online presence or purchase we make leaves a trail or a footprint.
Our digital footprint.
That means that our personal information can be used and even misused without our knowledge.
But there come the data management regulations to the rescue!
Without them, it would be like the Wild West out there.
Instead, you can have power over your personal information, meaning you can reclaim authority over it, and it can’t be used without your consent.
With you having control over your personal information and promoting transparency in managing data, these regulations give a sense of safety and order in this online world.
2. Personalized online experience
With all the trails you leave, while you search through the web, you give all your correspondents a good amount of data they can use to enhance your experience.
That’s the best way to use your digital footprint.
With the knowledge of your interests and likes and good data management, businesses you visit can make your next visits to their sites more tailored to you and more personalized.
That way, you can find what you want faster.
3. Feeling safer online
Don’t forget that we’re living in the 21st century, the age of the digital world.
This is probably the most turbulent age in human history, where thousands of pieces of information are received by our brains daily.
Everything changes so fast. And what was new yesterday is old news today.
That’s why it’s important to stay informed about your rights and ways to protect your digital footprint.
With all these data management regulations you can rely on, it’s going to be simpler, and you’ll feel safer online.
At the same time, you’ll keep up with the digital age effortlessly by searching the net.
Without rules, where would we be?
Imagine that not so long ago, the online world was just beginning to expand, and more and more businesses figured that the key to success was there. There was a space with the biggest audience in the world where you could present your business or idea.
But getting through was another problem. And with no rules, that was a very dishonest fight.
Also, the consumers were in doubt about whether to take a leap of faith and buy something online or to give up. Leaving all your data on some website you didn’t know you could trust was very questionable.
Like in every game with two or more players, rules are needed to make it a functional game.
It’s the same in life.
Laws and regulations are here to protect us and others we cooperate with and make this great game of business and life a fair play. When we know we’re protected, it’s easier to relax and live our lives more fulfilled.
If you’re a business owner, take a good look at these data management regulations and adjust your business policies accordingly.
It’ll do good for you, but most importantly, it’ll be good for your consumers. And their trust is something your business relies on.