The presence of Industry 4.0 is proof that industrial development cannot be separated from the role of technology. It also shows that the digital economy industry is a manifestation of increasingly developing technology. The development of the digital economy has pushed many business owners to provide their products or services on the Internet with many transactions carried out online. When online transactions occur, there will be exchanges of data between companies and consumers. However, behind the ease of online transactions, there are issues that can raise consumer concerns about the personal data they provide to companies. With technology 4.0, the economic industry is often the target of hacking. Without strong data security, hackers can easily take advantage of company systems to steal consumer data, corporate intellectual property, and even business sabotage.
With all the risks that come with the development of industry 4.0, what can companies do to protect their businesses and consumers? The answer: data security.
What is Data Security?
Data security is a set of standards and technologies that protects every aspect of digital information from destruction or modification of data. These cover everything from administrative and access controls to security logic software. When implemented correctly, a good data security strategy will protect company information assets from hackers and ill-intent individuals. However, a good data security strategy can protect company and consumer information assets from data leakage caused by internal parties, which until now remains one of the foremost causes of data leakage. Data security is crucial especially when consumers are starting to realise the importance of the data they provide to companies and the way companies handle their data can be a competitive business advantage.
Low-Touch Economy & Data Security
As the name implies, the term low-touch economy refers to business activities that conduct minimal direct interaction and more often interact digitally. The Covid-19 pandemic encourages the existence of a low-touch economy which results in changes in people’s behavior in interacting and transacting. Not only has an impact on changing people’s behavior, but the low-touch economy era also requires companies to adapt to survive.
One of the company’s efforts to adapt to the low-touch economy era is to start digitally transforming. It drives companies to be more massive in using technology to interact and transact digitally with consumers. There are various ways that companies can do this, one of which is by using different types of communication channels.
Furthermore, changes in people’s behavior in transacting during the pandemic indirectly also affected the growth of the digital economy. As reported from a survey conducted by McKinsey, 66% of Indonesians have switched to online shopping with more than 70% intend to continue making transactions online even after the Covid-19 pandemic has passed. Furthermore, it shows that the data exchange that occurs between companies and consumers will become more massive. It requires companies to maintain their data security.
For the company, the change in people’s behavior is both an opportunity and a challenge. Today is the companies’ opportunity to develop themselves in the digital era through various channels, and a challenge on how they store company and consumer data. The massive use and exchange of data make companies able to maintain all available data without security.
Data Security, Enterprise vs Small Business
With data owned by enterprises, there is a higher risk of personal data and security to be compromised. If a data breach occurs, not only will business operations be affected, consumer confidence will also suffer. Based on research conducted by McKinsey, as many as 87% of consumers said they would not make any transactions with companies whose data security levels are not clearly established. It is proof that consumers want to get a sense that their personal data will remain safe in the hands of businesses. On top of that, data security may also affect business relationships with investors. Trust from investors and consumers are highly impactful for businesses because both parties want to work with trusted companies.
Smaller businesses face the same risks as larger enterprises when it comes to data security. According to Verizon’s report, 78% of small businesses expressed the lack of a need for a data security strategy. This also means that small businesses may be easier targets. While any kind of data breach will cause financial losses and affect consumer confidence, it was found that as many as 60% of small businesses had to shut their business within six months after the occurrence of the data hack. Therefore, small businesses need to see the urgency in formulating data security strategies as a priority.
The actual loss for companies that can’t secure their data is the loss of their customers and investors who would have supported the company’s sustenance in the long term. All they want is a company they can trust and this in itself is a business advantage.
Your Enterprise Data is Safe with Qiscus!
With the ISO 27001 certificate issued by the British Standard International (BSI) Group Indonesia, Qiscus has strengthened its commitment to protecting consumers’ data. Qiscus’ concerns for data security encourages is meant to help your business create a memorable customer experience (CX) including building a sense of security for both consumers and your business.
Contact Qiscus for further discussion here.