Data-driven business and data privacy: Challenges and measures for product-based companies

Fabian Schäfer, Heiko Gebauer, Christoph Gröger, Oliver Gassmann and Felix Wortmann

Business Horizons, 2023, vol. 66, issue 4, 493-504

Abstract: To leverage the opportunities provided by the Internet of Things (IoT), product-based companies are exploring new data-driven business opportunities. They may miss these same opportunities, however, owing to data-privacy challenges. These challenges start with the customers of product-based companies, extend to the wider business ecosystem, and continue with the companies themselves. This article identifies 12 data-privacy challenges and introduces 12 measures to address them. These include intuitive recommendations, such as enabling cross-product consent collection, as well as less intuitive measures, such as fostering a can-do attitude in legal units, closing the gap between legal and business initiatives, or implementing a clear process for well-reasoned risk-taking. The following four principles were found to support companies in implementing these measures: (1) letting privacy and data-driven business go hand in hand, (2) putting customers first and turning their privacy preferences into opportunities, (3) aligning risk-management activities with the process of digital service development, and (4) using technology to professionalize legal processes.

Keywords: Data-driven business; Data privacy; Digital services; Risk management; Data sharing; Privacy principles (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:66:y:2023:i:4:p:493-504

DOI: 10.1016/j.bushor.2022.10.002

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