Majority APAC organisations consider privacy imperative: Cisco
By Digital News Asia February 15, 2022
- Some 91% won’t buy from those who do not properly protect its data
- External privacy certifications are important in their buying process
Cisco’s 2022 Data Privacy Benchmark Study found that privacy is mission-critical, as 91% of respondents in Asia Pacific consider privacy a business imperative.
In a statement, the firm said the survey, which is an annual global review of privacy corporate practices on the impact of privacy on organisations and their views towards data privacy, showed that privacy investment continues to rise and organisations see a high return on investments from privacy spending.
It said privacy has become a true business imperative and a critical component of customer trust for organisations around the world, with 91% of respondents in Asia Pacific saying they would not buy from an organisation that does not properly protect its data
It also said 93% indicating that external privacy certifications are important in their buying process.
Dave West, president, Asia Pacific, Japan, and Greater China, Cisco said privacy continues to grow in importance for organisations in Asia Pacific, with 96% of them saying they are reporting one or more privacy-related metrics to their board, and privacy investment rising with an average budget increase of 18%.
“These trends are more pronounced in the region when compared to the rest of the world, with markets like Japan (100%), Thailand (55%), and South Korea (45%) leading the pack in terms of increase in privacy budget.
“We need security and transparency to protect it, so it is encouraging to see that organisations in Asia Pacific are not only considering privacy a business imperative, but also seeing its benefits to the business,” said West.
The survey indicates that Privacy’s Return on Investment (ROI) remains high for the third straight year, with increased benefits for small to medium size organisations.
More than 60% of respondents felt they were getting significant business value from privacy, especially when it comes to reducing sales delays, mitigating losses from data breaches, enabling innovation, achieving efficiency, building trust with customers, and making their company more attractive, Cisco said.
Respondents estimate their ROI to be 1.8 times spending on average and while this continues to be very attractive, it is slightly less than last year (1.9 times spending), the company added.
This could be due to ongoing needs in responding to the pandemic, adapting to new legislation, uncertainty over international data transfers, and increasing requests for data localisation, it said.
According to Cisco, privacy legislation continues to be very well received around the world even though complying with these laws often involves significant effort and cost (e.g., cataloging data, maintaining records of processing activities, implementing controls – privacy by design, responding to user requests).
In Asia Pacific, 86% of all corporate respondents said privacy laws have had a positive impact, and only 3% indicated the laws have had a negative impact, the research indicated.
It also highlighted that as governments and organisations continue to demand further data protection, they are putting in place data localisation requirements, with 93% of survey respondents in Asia Pacific saying this has become an important issue for their organisations.
However, this comes at a price, as across the region, 91% said that localisation requirements are adding significant cost to their operation, Cisco added.
“When it comes to storing data, organisations must ensure that they comply with the data localisation legislations in the jurisdictions where data is being collected,” said West.
Finally, when it comes to using data, Cisco said 93% of survey respondents in Asia Pacific recognise that their organisation has a responsibility to only use data in a responsible manner.
Nearly as many (87%) believe they already have processes in place to ensure automated decision-making is done in accordance with customer expectations, the research highlighted.
Yet, Cisco’s 2021 Consumer Privacy Survey showed many individuals want more transparency and 56% of consumers surveyed globally are concerned about the use of data in AI and automated decision-making, Cisco said.
The research also indicated that 46% percent of consumers surveyed felt they cannot adequately protect their data, chiefly because they do not understand what organisations are collecting and doing with their data.
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