An evolving digital landscape
In today's digital era, our personal and professional information is increasingly stored and potentially accessible without our knowledge or consent.
Consequently, the importance of building societal-level digital trust in your organization has grown exponentially over the last couple of decades, as has the importance of taking an active role in protecting your own and your customers’ digital assets.
The importance of digital trust for businesses
According to McKinsey research, approximately 85% of consumers say that knowing an organization’s data privacy policies is important before considering a purchase. This statistic highlights the growing importance of digital trust for businesses, as customers increasingly demand transparency around data usage and data protection policies.
It also shows that organizations that are best positioned to establish digital trust are more likely than others to see annual growth rates on their top and bottom lines.
This underscores the direct link between digital trust and business success. Building digital trust can protect customer data, implement effective cybersecurity measures, and provide trustworthy products and services, leading to sustainable growth and competitiveness.
Key elements of digital trust
Digital trust also entails respecting privacy, protecting data, managing cybersecurity threats, and putting the establishment of digital trust at the core of an organization's strategy, culture, and values.
According to EY's report on becoming an analytics-driven organization to create value, companies with advanced analytics capabilities are 1.6 times more likely to have established a formal data ethics policy than those with a low level of analytics maturity. This indicates that data analytics and ethics go hand in hand when building digital trust.
Resilience is another essential aspect of building digital trust. According to Deloitte's report entitled Digital Trust for the Future, digital resilience can allow management to take measured risks with confidence, knowing that they have the foundation and capability to quickly respond to any disruption, potentially accruing long-term benefits for their brand.
Building resilience can involve investing in risk management programs and developing a proactive approach to cybersecurity.
The importance of transparency in building digital trust
Companies should also consider the implications of emerging technologies such as AI on digital trust.
While AI can offer significant benefits to businesses, it's important to mitigate the potential risks associated with the technology. As Deloitte notes in their report on the importance of digital trust, trust in artificial intelligence (AI) cannot be assured by technical means alone and must involve the development of ethical and transparent AI governance structures.
Another key aspect of building digital trust is enhancing transparency around data usage. The cost of a data breach can be significant, as evidenced in IBM Security's Cost of Data Breach Report 2020, in which the average total cost of a data breach increased to $3.86 million.
To prevent such breaches, companies must communicate transparently about how they collect, use, store, and share data. This enhances trust with customers who expect their data to be managed transparently, ethically, and responsibly.
Building digital trust for business success
Building digital trust has become increasingly crucial for businesses to thrive and succeed. Digital trust is about respecting privacy, protecting data, managing cybersecurity threats, and fostering transparency around data usage.
Businesses that establish digital trust are more likely than others to see annual growth rates on their top and bottom lines. Therefore, investing in digital trust can lead to sustained growth and competitiveness, enabling businesses to take measured risks with confidence.