Due to their business model, which involved selling their goods via resellers, these businesses have typically had little contact with the final consumer. However, several manufacturers smartly constructed digital experiences to interact with, sell to, and gather data from their customers directly as a result of resellers being closed or operating at reduced capacity.
Data that was previously gathered and owned by resellers or intermediaries was suddenly made directly available to manufacturers for them to profit from and learn from. This opened up new revenue streams by charging other organizations for their data, using it to cross- or upsell products, or making the customer experience less complicated.
With all likable traits of data collection, there however exists certain risks that comes with it. These risks not only include data hack, malware or data theft but also exploitation of the collected data that may lead to a brand wreckage or even legal challenges to an organization.
In order to minimize the damaging consequence, organizations are advised to develop a proactive ethical framework rather than any reactive measure, in order to govern the use of technology and data. These principles create a foundation of security and respect for clients, reducing consumer harm.
Moreover, with the evolution of cyber threats, the previously admired strategies are now outdated. There is no longer a secure border or barrier. Through the use of security-in-depth techniques like encrypted communications, segregated areas, granular authentication and authorization, and sophisticated intrusion detection systems, system design should enable risk management and security enforcement across the whole architecture.
Lastly, the manufacturers are also urged to reconsider their views on data in order to effectively address privacy. Particularly, they ought to give top priority to well-considered governance systems that allow for informed choice-making with regard to data collection, access, and utilization. Manufacturers could guarantee that data is treated properly and ethically by designating data owners. For enterprises, having a solid governance framework is important for safeguarding user data and privacy.
