With compliance commonly viewed as a cost center that drains resources and slows down operations, Intelligent CIO asked Carl D’Halluin, CTO, Datadobi, what would happen if the script was switched.
Regulations compliance is not just about avoiding negative consequences – it offers several strategic benefits that can enhance a company’s operations, reputation, and bottom line.
Here are some benefits of compliance:
- Risk Mitigation – helps identify, assess and mitigate risks associated with legal and regulatory obligations; reduces the likelihood of financial penalties, legal actions and operational disruptions
- Enhanced Reputation – builds trust and credibility with customers, partners, investors, and the public; enhances a company’s reputation and brand value
- Operational Efficiency – improved processes and systems; reduces waste and/or inefficiencies
- Competitive Advantage – can differentiate from competitors who may have a history of non-compliance; attracts clients and partners who value ethical and responsible business practices
- Market Access – prerequisite for entering certain markets or industries; companies that meet regulatory requirements can access new business opportunities and expand their market reach
- Customer Trust and Loyalty – data protection and privacy regulations compliance can increase customer trust and loyalty; demonstrates a commitment to safeguarding their information
- Employee Engagement – can foster a positive work environment; leads to higher employee morale, engagement, and retention, as employees feel they are part of an ethical organization
- Avoidance of Disruptions – business operations will not be interrupted by regulatory actions; allows focus on growth and innovation
- Investor Confidence – can attract investors who are looking for stable and reliable companies; increases the likelihood of securing funding and investment
- Long-term Sustainability – environmental, social, and governance (ESG) standards compliance; contribute positively to society and the environment
But, it ain’t easy
Every sector has its own labyrinth of regulations to navigate – from HIPAA in healthcare to GDPR in Europe and SEC rules in finance. One customer described it to me as trying to solve a puzzle, where the pieces keep changing shape – paints a picture doesn’t it?
About 80-90% of all data generated today is unstructured, and it’s growing at a rate of 55-65% per year. Think emails, documents, images and social media posts… this type of data is notoriously difficult to manage, unlike structured data which sits prettily in organized formats – like databases.
Yet, hidden within our exponentially growing stores of unstructured data is oftentimes exactly the information that organizations need in order to comply with regulations.
So, like it or not… companies are now finding that the ability to get their arms around their unstructured data walks arm-in-arm with their ability to comply with regulations.
Turning regulations compliance into a value-add was already a tough sell… and now the complexities and cost of managing unstructured data has been added to the mix.
The regulatory landscape is complex, that’s true. However, like so many other situations in life, if you handle it well, you can flip it to your advantage. Simply by viewing and treating compliance as more than just a cost, hurdle or headache organizations can unlock new value, build trust and position themselves nicely for even greater success.
Here are some practical tips on how to get started:
- Invest in flexible, comprehensive solutions – Seek solutions that provide complete visibility into your unstructured data landscape — especially those that provide customizable reporting and policy-based data management.
- Implement robust data organization – Proper tagging and classification of unstructured data is crucial, as it not only helps with compliance but can also make your data more accessible and valuable for business intelligence.
- Foster a compliance-aware culture – This isn’t just about annual training sessions — it’s about integrating compliance considerations into daily operations and decision-making processes, especially when it comes to handling unstructured data.
- Leverage compliance for competitive advantage – Use your robust compliance processes as a selling point, especially in B2B contexts where data security is a major concern — meaning, how you manage and secure unstructured data can turn into a major differentiator for your organization.
- Think proactively, not reactively – Instead of scrambling to meet new regulations as they emerge, build systems flexible enough to adapt to changing requirements — which is particularly important for unstructured data, where the volume and variety of data types continue to grow.
- Collaborate across departments – Compliance shouldn’t be siloed in legal or IT. I.e., involve stakeholders from across the organization to ensure compliance efforts align with broader business goals and to tap into the potential value of your unstructured data.
- Implement data mobility strategies – As regulations change, you may need to move data between different storage systems or jurisdictions — so having a robust data mobility strategy, especially for unstructured data, can help you stay compliant while optimizing costs.
In the words of one tech CEO I spoke with who was struggling with GDPR, dealing with compliance felt like trying to hold onto a handful of sand.
But with the right mindset and tools, particularly those equipped to handle the challenges of unstructured data, that sand can be transformed into something solid, valuable, and lasting.
The bottom line is this… as unstructured data continues to grow in volume and importance, organizations that can effectively manage and derive value from it while maintaining compliance will have a significant competitive advantage.
Or said another way – by treating data compliance as a value-add rather than just a cost, companies can turn a regulatory challenge into a business opportunity.
