Data Protection a ‘Major Hurdle’ to Firms’ Digital Transformation
The admissions by business leaders were highlighted in Dell’s bi-annual Digital Transformation Index.
Nearly one-third of businesses don’t believe they comply with General Data Protection Regulations (GDPR), according to Dell’s bi-annual Digital Transformation Index.
Dell Technologies surveyed more than 4,600 business leaders from around the world to analyse their organisations’ digital transformation efforts.
Dell’s index highlights a concerning lack of faith among businesses in regards to data protection practices, and also reveals that 16% of firms think they will struggle to prove themselves trustworthy to consumers.
Firms risk huge fines if they fail to properly handle and protect consumer data under GDPR.
More than one-quarter of businesses, Dell found, believe they can’t be trusted with user data. Despite this admission, the majority of businesses surveyed said they fully understood the responsibilities of handling consumer data.
Poor confidence in regards to the protection of employee data was also revealed in the survey. One in three said they didn’t trust their organisation to look after employee data.
While 91% of businesses surveyed said they faced “major hurdles” to transformation, in 2016 the most significant hurdle for many was identified as a lack of budget and resources.
Data privacy and security concerns were the fifth major hurdle identified by businesses in 2016. However, two years later this was still identified as a significant hurdle for many.
Regulatory and legislative changes were also shown to be a major stumbling block for firms, ranking fourth place on Dell’s 2018 barriers list.
Despite a lack of confidence over data protection, the Index shows that companies are continuing to invest in digital transformation, with a strong focus on cybersecurity.
More than half (58%) identified cybersecurity as a key area in which they will invest over the next 1-3 years. More than 90% of firms also intend to invest in a host of transformative technologies over that same time period, including the Internet of Things (IoT), blockchain, artificial intelligence and multi-cloud environments.
Michael Dell, chairman and CEO of Dell Technologies, said: “In the near future, every organisation will need to be a digital organisation, but our research indicates that the majority still have a long way to go.
“Organisations need to modernise their technology to participate in the unprecedented opportunity of digital transformation. The time to act is now.”