In 2020, consumer data is the most valuable asset for businesses, and cybercriminals are well aware of this fact. It’s no wonder that standards for protecting digital identities are one of the hottest topics today among CIOs and other executives.
Digital transformation is no longer optional. Your business either adapts and thrives, or stays the course and flounders. It’s as simple (and complex) as that. Every business is going digital, and it’s the role of the CIO to lead the vanguard when it comes to managing digital assets.
Digital Transformation: An Overview
Digital transformation is a double-edged sword. It has changed the way we do business, bringing goods and services directly to fine-tuned target demographics in a way we never could before. Social media, analytics, mobility, artificial intelligence, and automation, you name it. There are countless technologies opening up unprecedented marketing and client service avenues.
The flip side is that digitization has also made us more vulnerable to cyberattacks. This is much more than a minor inconvenience. In fact, 60% of companies fail within six months of a cyberattack. It’s no wonder worldwide spending on cybersecurity is increasing.
In addition, users demand sovereignty over their data. They want to know how it is used, and they want the ability to control and revoke this data usage whenever they choose.
In order to stay competitive, every forward-thinking CIO needs to ensure that their company’s digital transformation initiatives are successful. This means safeguarding digital assets while winning and maintaining customer trust.
What The Latest Studies Indicate About Digital Identity
According to a recent study by Eric Moore from Regis University in Denver, Colorado, it is vital to find new models to manage user reactions to the loss of control over their digital identities. As the co-vice chair of the IFIP WG11.8 on World Information Security Education, a leading multinational, apolitical organization that represents IT Societies from 56 countries/regions, the author of this paper is perfectly positioned to address this issue.
Consumers are becoming more digitally independent in the way they manage their lives. They value control over the management of their digital identities and research indicates that the best course of action is to simplify digital solutions to ensure that consumers feel more empowered.
Another study by Sunil Abraham, Indian technology policy analyst and Executive Director of the Centre for Internet and Society, drew from lessons learned from Canada’s approach to digital identity and e-governance.
His findings suggested that the digital identity systems that build trust are based on:
- Multi-stakeholder coordination
- A strong network paradigm
- A focus on open standards rather than specific technologies
- Clarity and predictability on intellectual property
- An openness to the latest technological developments
5 Things CIOs Should Look For In Digital Identity
When considering the benchmarks for digital identity, CIOs should look for a platform that:
Never Takes More Than You Need
Start by addressing the ‘more is more’ approach to data that most businesses tend to have. Collecting data for the sake of collecting data during the customer registration process should never be your goal. It not only makes the process more cumbersome (never good) but it also wastes resources. Not to mention the fact that it increases the risk of identity theft exponentially.
Keeps Data Safe in Transit and at Rest
Data is at its most vulnerable when it is in transit between servers. As such, encryption in transit is a crucial part of keeping it protected. Furthermore, data governance and compliance efforts call for encryption at rest as well. A platform with an ISO 27001 certification is your best option. It shows that the system is up-to-date with information security and risk management standards.
Limits Data Accessibility
The data you gather will not be in use at all times. As such, there is also no reason for it to be accessible to everyone within the company at all times. Field-level encryption provides management with the ability to permit access to information on an as-needed basis.e Encrypting data within particular data fields safeguards this information from anyone who is not cleared for access.
Allows for More Secure Authentication
While some of your clients may know how to safeguard their personal information, this is not the case for every user. As CIO, it is up to you to find ways to reduce risk.
For example, start by investing in a system that allows for logging in without a password. Also consider Single Sign-On (SSO) systems, which allow you to use one ID and password for multiple related, yet independent, systems or web applications. This will help deliver a more secure and unified user experience.
Is Respectful of Customer Privacy
Contemporary compliance regulations have come a long way. Customer privacy should be front and center at all times. They have to be informed of why their data is collected, who will have access to it, and how it will be used. Your business also requires their express consent to do so. This process not only safeguards their privacy but also strengthens your brand’s reputation in the long run.
Now is the time for CIOs to make their mark as the drivers of vital digital transformation throughout their companies. It’s a fine line as security has to be kept in balance with the overall operational transition, and that’s a tall order.
However, once digital homeostasis has been achieved, customer experience is elevated from the inside out. Best of all, this goes for both internal and external customers.
LoginRadius’ compliance-ready platform prepares your business for global data regulations while simultaneously fostering customer loyalty with its highly secure customer identity management features.
Make the first move by taking ownership of this important process. Define key building blocks in the customer experience and address them one at a time. Start with digital identity and get ready to lay the groundwork for future-proof systems that smooth the way for operational success!