Many companies have concerns about whether they are truly on the legally secure side when it comes to data protection in the realm of Big Data. As a result, some proceed with caution regarding Big Data. However, data protection is not the only reason for this cautious approach.

 Big Data and data protection are like an uncomfortable, disliked relative: people prefer to ignore it, but they can’t completely escape it. The same applies to Big Data projects. Many engage in them but do not discuss them openly. The reasons for this are varied. One important aspect in this country is the controversial topic of data protection. On one hand, many people freely post all kinds of personal information on social media – from their address, birthdate, current location, and children’s names to their favorite food. On the other hand, these same people often react strongly when terms like 'data theft' or 'data misuse' make headlines, demanding stricter data protection. This is because most Germans are extremely concerned about what happens to their personal information – and unfortunately, many companies are as well. Currently, no one wants to take too many risks when handling personal customer information. Especially not if there is even the slightest chance that potential negative headlines could upset their valuable customers.

Admittedly, countries in Europe have a much harder time complying with legal requirements for their Big Data projects compared to, for example, the USA. There, the handling of customer data is much less regulated. Therefore, on June 16, 2020, the European Court of Justice (ECJ) declared the so-called "Privacy Shield" invalid. The already controversial agreement had been used by companies to transfer personal data of European citizens to the United States. The problem was that, according to American law, the US government could access the information at will. The ECJ declared the Privacy Shield invalid because data protection standards were not guaranteed according to European criteria. Consequently, data transfers based solely on the Privacy Shield are now illegal. Violations could result in substantial fines. And since many companies store their data with American cloud providers, they now face a problem.

 Many companies therefore simply shut down due to the strict data protection regulations here, especially when it comes to Big Data and the processing of personal data. And this is despite the fact that modern software solutions now offer almost unlimited possibilities to optimally manage customers along the customer journey – and in full compliance with the law. The functionalities of most solutions even ensure that handling sensitive customer information always meets the legal requirements of data protection.

Nevertheless, many companies still feel uncertain about what is allowed and what is not in terms of data protection. But this is the wrong approach. Others are seizing this opportunity and are therefore a decisive step ahead. While many countries focus on the great opportunities of Big Data, Germany tends to emphasize the risks and raise concerns. Those who are unsure about what is allowed and what is not should consult specialists like Thought Leader Systems. We work with leading legal experts and are happy to advise you on legally compliant handling of your sensitive customer information.

However, there is another significant reason not to boast too publicly about Big Data successes: companies are evidently simply afraid of imitators. Who would willingly reveal their own secret to success, allowing the competition to catch up? That the effort with complex analyses is worthwhile is demonstrated by the innovation potential analysis "Big Data – Advantage Through Knowledge" conducted by Fraunhofer IAIS in collaboration with the Federal Ministry for Economic Affairs and Energy (BMWi). The study examined 55 international Big Data use cases across different industries. According to the findings, respondents see the greatest potential in building strategic competitive advantages (69 percent). This is followed by increasing revenue (61 percent) and saving costs (55 percent). Increasing productivity and data-driven planning and decision-making are other goals that seem achievable with Big Data. Depending on the application, several of these goals can be supported simultaneously.

It is clear: when information is correctly combined, Big Data can make a significant contribution to the value chain of any company. And there are plenty of data sources: on the one hand, existing customer data such as addresses, order histories, and documents; on the other hand, external data from market research, collected information from social media channels, or data gathered through customer loyalty cards.

The problem is simply extracting meaningful knowledge from this flood of information and deriving actionable insights from it. Most companies, however, only focus on storing the data and not on what they can do with it. When it comes to analyzing the available information, most companies have not made much progress. The know-how in Big Data is lacking and needs to be either acquired through a lengthy process or bought externally. However, such data specialists are currently scarce. Most degree programs that provide this knowledge are brand new and still in development. So-called "Data Scientists," or specialists in data analysis, can currently claim, according to the Harvard Business Review, to have the "most sexy job of the 21st century."

To enable your company to leverage existing data as a growth source and fully exploit the potential of Big Data while complying with data protection regulations, you need to digitally optimize your business, processes, technology, and customer relationships in real-time. This requires the right strategy, system architecture, business processes, and business support. At Thought Leader Systems, we support you in your digital transformation processes in marketing, sales, and service. Together, we will unlock your full market potential, maximize the value of your data, and continuously increase your company's success. Interested? Then give us a call!