Sound Data Privacy Policy Can Drive Market Differentiation

When it comes to consumer technologies such as the Internet Things (IoT), the shift enables businesses to adapt their data privacy policy to redefine their customer interactions. Organizations with mature data privacy policy can use security and privacy as point of competitive differentiation, according to Lisa Donchak, engagement manager at McKinsey & Co. While those that don’t risk reputational bruising or potentially running afoul of a growing number of privacy regulations. The increasing amount of data business-to-consumer companies collect on their customers is a “double-edged sword,” Donchak said. “On one hand, you can do some amazing analytics, better understand your consumer and craft value propositions around that. On the other hand, there’s an increased responsibility to handle the data the right way.