Organizations are putting their trust at the core of the way they integrate data to create massive opportunities for greater success. Industry leaders are fostering a data ecosystem and leveraging the generated insights to build consumer trust and create a culture of data-based decision-making without giving away a competitive edge. Leaders are also ensuring that the data within their organization is accurate and clean for it to be leveraged to make the best-informed decisions for important business ventures, including developing new business frameworks and entering emerging markets.
The Incongruous State of Digital Trust
Today, a majority of consumers believe that organizations that provide the foundational elements of digital trust are likely to gain more confidence. Many organizations are incorporating measures to protect consumer data and enact effective cybersecurity, thereby offering trustworthy data solutions and transparency around usage. However, they need to earn the trust of their customers while also trusting the data accumulated from their own processes and ecosystems.
Transparency, reciprocity, and accountability are critical to earning trust among key stakeholders. And market leadership can only be achieved when an organization demonstrates a high level of trust in its customer data along with its own business processes and ecosystem.
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The Importance of Trusting Data Process
Industry leaders are leveraging data to build customer trust and create cultures of data-based decision-makers without giving away a competitive edge. These leaders are working towards gaining a deep understanding of strategies to build trust in customer relationships as a strategic imperative. This is critical at a time when consumers are voicing their concerns more than ever before in their willingness to share personal information.
There is also a greater willingness to share information with companies that are transparent about how the data is being used. Organizations that have earned customer trust are likely to keep the data they have. Leading organizations that have put data trust at the core are creating massive opportunities for success.
Many businesses today are feeling the need to be able to earn the trust of their consumers while also trusting the data collected in this process. There is a growing need for transparency in how organizations handle customer data. Leaders are taking great pains to ensure that the collected data is accurate and clean for them to leverage and make the best-informed decisions for developing new business models and entering new markets.
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Establishing a Trust-based Mechanism
Trust lies at the core of every human relationship. For businesses, acquiring and protecting stakeholder trust is critical for ongoing viability and success. Trust is also an important driver of financial performance. Organizational trust is the byproduct of a company incorporating necessary measures in everything to get things right for their stakeholders. Trust is built and nurtured when an organization demonstrates a high degree of competence with the right intent.
Market leadership is attained when a business establishes a high level of trust in its customer data along with its business operation across the ecosystem. Leaders who understand that transparency, reciprocity, and accountability are critical ingredients for earning trust stand out among key competitors.
But how can more leaders be enlightened?
Data that stays within the organization is likely to drift out of date than grow in value. Organizations are liberating their data while de-risking data exchanges in a shared ecosystem. This enables them to circulate the data widely without sacrificing their responsibility to secure and safeguard it. It is equally vital for companies to practice transparency when handling consumer data and engaging with business partners.
But managing data and creating insights is not enough. To accelerate digital business transformation, organizations need to:
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strengthen customer relationships to become trusted custodians of personal data
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demonstrating transparency by demonstrating data about offerings and workflows
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using trust advantage to create differentiating business models
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building ecosystems to create new exponential value
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stimulating a culture of data-based decision-makers to elevate customer experiences
These activities will further help in delivering measurable business outcomes. But industry leaders need to understand and practice ways to share data on business platforms without giving away a competitive edge.
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Ways to Jump-Start the Data Trust Journey
No matter the set archetype in an organization, leaders can undertake critical actions that will assist in developing the traits needed to boost performance and move them decisively toward greater data maturity.
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Run a pulse check: Leaders should assess the data maturity within the organization along with digital capability maturity. They should also ensure that employees are aligned on a vision that reflects the economic as well as strategic realities. By establishing a clear understanding of data, leaders can establish a framework that is critical to aligning and prioritizing business initiatives and measuring their impact.
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Hire talent for data priorities: With the underlying economic uncertainty, corporate leaders are also feeling the financial pressure to be careful of pausing technology spending and rigorously prioritizing tech spend. Leaders are further reviewing their data priorities and goals and assessing the existing talent gaps.
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Align the partner ecosystem. A partner strategy is critical to build data maturity and resilience. For organizations with less financial resilience, it is vital to have a partner ecosystem that can deliver the key assets. For example, partnerships with service providers will enable organizations to scale solutions quickly and optimize sourcing costs.
But to establish a framework that fosters data sharing, organizations need to work with business leaders across units to create a data-sharing mindset. By fostering collaboration and integrating a data ownership culture, they can further identify and evaluate the emotional impacts and inherent biases that are likely to hamper data sharing.
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In Conclusion
Data sharing helps in optimizing higher-relevant data and generating robust analytics to solve business challenges. A recent Gartner study predicts that by the year 2023, organizations that promote data sharing will outperform their peers. However, there needs to be a collaborative data-sharing framework that can function without hampering business outcomes and is detrimental.
Adopting digital trust technologies like blockchain will further assist organizations in securely collecting data and efficiently transferring and sharing assets. Overall, the use of data-quality metrics and augmented data catalogs will help in compiling the right data and evaluations to determine the trustworthiness of data sources further.
With the creation of new and flexible data management practices, organizations can adapt to uncertain and changing environments and prioritize use cases with increased data sharing to yield maximum alignment with business outcomes.
By developing trust-based mechanisms, organizations can establish high levels of trust in the data source, thus aligning appropriate data use with their business goals within as well as outside the organization.
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About SG Analytics
SG Analytics is an industry-leading global insights and analytics firm providing data-centric research and contextual analytics services to its clients, including Fortune 500 companies, across BFSI, Technology, Media & Entertainment, and Healthcare sectors. Established in 2007, SG Analytics is a Great Place to Work® (GPTW) certified company and has a team of over 1100 employees and has presence across the U.S.A, the U.K., Switzerland, Canada, and India.
Apart from being recognized by reputed firms such as Analytics India Magazine, Everest Group, and ISG, SG Analytics has been recently awarded as the top ESG consultancy of the year 2022 and Idea Awards 2023 by Entrepreneur India in the “Best Use of Data” category.
