Data is everything because it is turning business models upside down, while guiding the world through its health and economic challenges. It is not enough, because it is worse than useless—it is a source of risk—unless you can trust it. The answer to this challenge is a data trust strategy: one that simultaneously maximizes data’s ability to create value and minimizes its capacity to destroy it.
Do you believe that your company is making its data and data usage more trustworthy? If so, you’re like most business leaders. There’s just one problem: consumers don’t agree. Fifty-five percent of business leaders say that consumers trust them with their data more than two years ago. But only 21% of consumers actually report increased trust in companies’ use of their data. More (28%) say that their trust levels have been dropping. 76% of global consumers say that sharing their data with companies is a “necessary evil.”
For companies that do build trust in data, the rewards are enormous. Only 37% of companies that have a formal data valuation process include privacy teams. Integrating privacy is just one element of data trust, but these pacesetting companies are already more than twice as likely as peers to report ROI from key data-powered initiatives such as generating new products and services, improving workforce effectiveness and making business operations run smarter and faster. It’s possible to do still better: build an engine to continually convert raw information into trusted, business-critical data.
86% of executives said in our 2019 data trust survey that their companies are in a race with competitors to extract value from data. You can only win this race if you know where you need to go: what data your business needs to grow and how you will use it. Whatever your company’s role in the marketplace, its data trust strategy begins here: determine how trusted data can help the business offer new and better value propositions, and make the whole organization nimbler—while balancing and reducing that data’s risks and costs.
Creating and fulfilling this strategy requires a new approach: a team with cross-functional expertise in finance, lines of business, data science, ethical data use, security and privacy. This team will guide ongoing collaboration to create and protect data’s value for the business. It will guide IT departments’ shift toward fewer, more capable data repositories for better access and control. It will monitor data quality, quantify its financial performance, identify new data needs and balance risk and value for new data use cases.
This team will need to build and govern four capabilities in the organization, which together turn data into trusted data—the fuel for innovation and growth.
Your business’s future depends on your data ambitions, and your data ambitions depend on trust. Start or accelerate your data trust journey today.