Liz Adeniji —CONTRIBUTED PHOTO
Employees’ data literacy and consumer data privacy education will set the foundation for navigating Asia-Pacific’s increasingly data-driven business landscape.
Data privacy and compliance will become a shared responsibility across departments and teams, as evolving regulatory standards necessitate organizations to constantly balance data-driven strategies with ethical considerations. Businesses in the Philippines may need to work harder to build trust among customers, especially as 55 percent of Filipino marketers report reluctance from customers to share personal data with brands.
Renewed focus on transparency
Embodying a commitment to privacy while fostering trust among consumers, 2024 will see a renewed focus on transparency around data collection, use and sharing, holding organizations more accountable than ever before. Data literacy will become a core component in employee upskilling and recruitment.
We also expect organizations to take on a more proactive role in consumer data privacy education, including providing easy-to-understand privacy notices and guiding consumers on options to control their data.
Attribution, measurement and personalization at scale will become key considerations alongside privacy, consent and governance. This will fundamentally impact the operations and strategies of many marketers and data practitioners.
Customer data platforms to dissolve traditional silos
Data platforms will serve as a unifying force in organizations. Execution of a common data strategy will become a shared responsibility among key leaders.
Several platforms are expected to drive a significant shift in organizational dynamics in 2024: customer data platforms (CDPs), which are single centralized customer databases that contain data from all touchpoints and interactions with a product or service; composable CDPs that allow companies to customize the components of their data foundations without fear of them working together effectively; data clean rooms that enable advertisers to analyze and share data without compromising data privacy laws; and data warehouses, which are systems to store large amounts of historical data so it’s easy to access and analyze.
According to International Data Corp., 50 percent of Asia’s top 1,000 organizations will adopt CDPs as the enterprise customer data service for real-time transactions by 2024. Modern data platforms, which are expected to help dissolve traditional silos within business divisions, will serve as a unifying force that will bring diverse teams and functions together under the common language of data.
As data become more integral in driving decision-making and new opportunities, organizations will prioritize developing a unified data strategy. We expect key leaders, including the chief technology officer, chief marketing officer, chief product officer and chief revenue officer, to extend beyond their traditional roles and work more closely together to shape the data vision of organizations. This collaborative approach will help foster a more comprehensive perspective of a company and its business practices, facilitating informed decision-making and growth.
Data minimization
Resolution of the data conundrum will take center stage in 2024. Organizations will explore data minimization, among other approaches, to mitigate data privacy risks.
The data minimization versus maximization debate will dominate boardroom discussions in 2024 as organizations continue to explore how to harness artificial intelligence (AI) to drive impactful business outcomes.
Amid data breaches and data privacy concerns, we see organizations shifting toward data minimization as a tactic to mitigate risks and adhere to privacy standards. Data minimization is the principle that any organization collecting personal data should be deliberate about the data they collect, not just collecting extra customer data “just in case.” Data minimization also means deleting data that are no longer needed.
However, there is a question on whether gathering only critical data for specific business objectives—instead of accumulating vast quantities of data—will impede the growth and effectiveness of AI-driven strategies. This 2024 will see organizations exploring a feasible middle ground that ensures an optimal balance between data utility, privacy and security. —Contributed
The author is regional vice president of segment, Asia-Pacific and Japan at Twilio, a US-based internet infrastructure solutions developer.